‘Drug’ $ 7000 billion to save the global economy between the Covid-19 epidemic: America spent the most powerful money in history, how did the countries in the European epidemic respond?

G20 leaders – representing the world’s largest group of economies – on Thursday announced that they are willing to do “anything” to minimize economic losses and recover. global growth. “The importance and scope of these responses will bring the global economy back into orbit, creating more jobs for the people,” the leaders said in a joint statement. They also pledged a $ 5,000 billion stimulus package.

At the national level, economies that suffered a severe crisis during the Covid-19 pandemic also took first steps to minimize losses. The response of governments in this pandemic was seen as agile and unprecedented.

The US approved the largest economic bailout package worth 2,000 billion USD in the hope of “spectacular recovery”.

President Donald Trump signed on Friday, March 27, to sign the largest economic bailout package in US history, spending $ 2,000 billion to respond to the Covid-19 pandemic. As a result, the government will be able to provide money and unemployment benefits to residents, transfer money to states and set up relief funds for businesses affected during the epidemic.

To mark this memorable milestone, the President thanked the “Democratic and Republican Party for standing shoulder to shoulder and putting America first,” and hoped that the bailout package would clear the way for economic recovery. International. ‘I think we will have a spectacular recovery “ – Mr. Trump declared.

President Trump signed the law to enact the stimulus package on March 27 (Image: AP)

Under the new law, millions of Americans with incomes below $ 75,000 will be granted $ 1,200 directly and an additional $ 500 per child. Unemployment benefits will be extended by 13 weeks. In addition, this is the first time that free workers and contract workers in the US have received support.

The bailout also provided a $ 375 billion loan to small businesses, in addition to a $ 500 billion loan for crisis-stricken companies (including airlines). In addition, 100 billion USD will be transferred to the frontline hospitals to fight epidemics.

The bustling New York City has become quiet after a home-based order

The Trump administration’s bailout law was enacted as the United States recorded more than 100,000 cases of Covid-19. At the same time, hundreds of millions of people are experiencing unprecedented social isolation: No work, no school, no out of the house except in some cases.

The UK “does everything possible” with a US $ 398 billion bailout

British Finance Minister Rishi Sunak said the government had set aside £ 330 billion (~ US $ 398 billion) of loans to businesses. “We will secure people’s jobs, help maintain our income and run our business … We will do everything we need. That means any business that needs cash can get cash.” government-backed loan. “

Sunak added that the nearly $ 400 billion bailout the government had just issued was “unthinkable” a few weeks ago. However, he sees the economy as “in a state of emergency” no less than public health. Mr Sunak assured the government would continue to support the hardest hit areas of the economy, with measures such as tax exemptions or cash grants.

Now, small businesses can be supported up to 25,000 pounds to survive the crisis. In addition, Minister Sunak said the National Health Service (NHS) – which has been under severe pressure for weeks and faces the risk of overload – will receive “any resources” it needs. .

Finance Minister Rishi Sunak (left) and Prime Minister Boris Johnson at a news conference on response to the Covid-19 epidemic (Image: Getty)

The British government has been criticized for being more cautious in issuing control measures than in many other European countries. Schools remain open and businesses are operating, though the UK has become the fifth largest epidemic region in the old continent after Italy, Spain, Germany and France – with more than 14,000 people infected with the virus and hundreds of deaths. casualties.

Until March 24, Prime Minister Boris Johnson confirmed that “drastic measures” are needed to contain the disease. “We may have to act faster and stronger in the coming days . “ Despite confirming Covid-19 infection on March 27, Prime Minister Johnson confirmed he would continue to lead the fight against epidemics in the foggy country.

The two countries most affected by viruses in Europe also pumped billions of dollars, but not enough

Italy and Spain are both rich countries and have the world’s leading health care, with a high average life expectancy. However, these are also the largest outbreaks in Europe. Italy has more than 86,000 people infected with Covid-19 and more than 9,100 deaths (the highest in the world). Spain has nearly 66,000 patients and more than 5,100 deaths (second highest in the world). The two nations on the Mediterranean coast have also tightened their blockade orders for half a month, making the economy on the verge of recession even more shaky.

To reduce the damage, Spanish Prime Minister Pedro Sanchez announced a bailout package worth more than 200 billion Euro (~ 219 billion USD), including the provision of loans, credits, and direct aid for a series. businesses and workers. This bailout is equivalent to 20% of national GDP.

Italy also approved a 25 billion Euro (~ 28 billion USD) economic aid. Meanwhile, a series of blockade measures have been applied in the country of 60 million people since March 9; including closing schools, shops, restaurants and sporting venues, residents must stay at home most of the time. This makes all economic activities almost frozen.

The disease struck hardest on the northern region – the economic heart of Italy (Image: AP)

The US $ 25 billion bailout package is an emergency measure that helps suspend corporate and household debt and mortgages. In addition, the government also supports businesses to pay workers who are leaving work because of the blockade.

“This is a bailout of heavy assistance” – Italian Prime Minister Giuseppe Conte said. But he admits “never thought to deal with the flood with a mop and bucket to collect water like this” . Conte and the Italian government understand that the bailout is not enough to heal the severely damaged economy and is urgently discussing to take further measures.

China cautiously restarted the economy after 2 months of holding back

To date, China has announced at least 116.9 billion yuan (~ US $ 16.4 billion) in bailouts and fiscal stimulus, plus 800 billion yuan (~ US $ 112.5 billion) in decline. tax fees. But if necessary, the country will likely spend trillions of dollars and huge debt to strengthen the economy.

After the blockade of a series of cities, China is both restarting the giant economy and alert for the risk of a second outbreak. According to CNN , China’s actions will be a lesson for other countries on balancing the blockade, stopping the spread of epidemics and ensuring the economy is not seriously degraded, causing millions of people to lose their jobs. . Analysts from investment bank Goldman Sachs forecast that China’s GDP could fall 9% in the first quarter of 2020 compared to the same period last year.

Small and medium-sized businesses are a strong motivator for China’s economy, and the government is trying to “revive” them after the blockade.

The world’s second-largest economy is salvaging the situation with strong policies and campaigns to encourage workers to return to work, expand the confidence of businesses and try to protect public ty from the risk of collapse.

In addition to the billions of dollars Beijing has paid for medical equipment and treatment, the government is and will continue to inject money into infrastructure projects to create jobs. The government also reduced taxes for small businesses, asking banks to extend loans to households or companies to help them through these bleak days.

Pekingese in the working day 12/3

China emphasizes the strong resilience of the economy. Xinhua news agency in late February called the American conglomerate Tesla a symbol of “foreign companies’ confidence in China.” Earlier, the electric car maker reopened its factory in Shanghai and announced plans to expand production.

Japan is more urgent than the 2008 financial crisis

The Japanese government will consider an economic stimulus package in the coming weeks, which could spend 30,000 billion yen (~ 272.2 billion USD) to distribute money to people and lend to small and medium enterprises.

The Bank of Japan said it would increase the rate of increase in the size of its purchase of portfolio exchange fund certificates (ETF) by 6,000 billion yen (~ US $ 55 billion) and increase the annual purchase rate of real estate investment trusts. production to 90 billion yen (~ 822 million USD). They also raised the limit to repurchase commercial bonds and corporate bonds to 2,000 billion yen (~ US $ 18 billion).

Close to Asia’s major outbreaks, China and South Korea, but Japan is still not a global hotspot for the number of cases. However, the fact that the Diamond Princess yacht was isolated and the 2020 Tokyo Olympics were delayed has seriously affected the image as well as the Japanese economy.

Moreover, the number of domestic infections is showing signs of increasing. Prime Minister Shinzo Abe said on March 28, “Unlike Europe and the United States, Japan has almost never seen a sharp outbreak. However, if we let our guard down, the chain of infection could occur.” out at any time. People need to keep in mind that this is a protracted battle. “

Prime Minister Shinzo Abe spoke on March 28 (Image: AFP-JIJI)

According to the Japan Times , Abe’s recent statement showed a disturbing nuance after the number of Covid-19 cases increased across the country, with 60 more in Tokyo alone on March 27.

Japan has approved a record budget of 102,660 billion yen (~ US $ 951.3 billion) for fiscal year 2020, higher than the stimulus package in the 2008 financial crisis. In cash support for households, expand lending without interest, no tax for small and medium enterprises. Prime Minister Abe also left open the possibility of a stronger economic relief after the epidemic, including reviving the most attacked areas such as tourism and hotels and restaurants.

(According to NY Times, CNN, CNBC, Japan Times)