Global economy is in crisis. Here’s what the world is doing

NEWDELHI: The rapid spread of coronavirus (Covid-19) disease around the world has severely affected the global economy causing economic distress to companies and individuals.

The pandemic has led to a lockdown in large parts of the world. As India grapples with the consequences of the economic crisis due to Covid-19, here is a look at steps that major countries have taken to deal with the same.

THE UNITED STATES

The United Statest is working on its third stimulus package of more than $1 trillion to support its industries as well as workers. As a part of this package, the government is planning to give $1200 per adult and $500 per child in direct money transfer.

THE UNITED KINGDOM The Bank of England has cut the bank rate by 50 basis points to 0.25%. It has announced a scheme that would pay grants to firms to cover up to 80% of the salary of workers (up to 2500 pounds per month) to avoid mass layoffs. It has also deferred the next quarter of VAT payments of companies.

EUROPE

Germany is planning a €150billion ($1600billion) rescue package to support its economy. The government is also setting up a 500billion-euro bailout fund to take stakes in critical industries, according to reports.

The French government has announced a 45 billion euro ($50 billion) aid for small businesses and employees mainly through deferral of tax payments.

CHINA

The People’s bank of China announced had in early February decided to inject 1.2 trillion yuan ($174 billion) into the markets through open market operations in the banking system. To lower the cost of financing, the PBOC has also cut the amount of cash that banks have to set aside as reserves (reserve requirement ratio) from mid March.