The €500 billion ($547 billion) COVID-19 recovery fund proposed by German Chancellor Angela Merkel and French President Emmanuel Macron has been hailed as a turning point for the European Union – and for good reason. Beyond its concrete economic implications, the proposal reaffirms a commitment to solidarity by the EU’s two largest economies, thereby setting the stage for genuine progress toward fiscal union.
When the 2008 global financial crisis erupted, China’s exports collapsed, threatening massive job losses. In response, China unleashed the world’s biggest-ever construction boom, pouring more concrete between 2011-13 than the United States did in the entire twentieth century.
Credit rating, in general is a quantified assessment of the credit worthiness of any entity such as corporations, conglomerates, autonomous governments or even a country. It is the symbolic indicator of the opinion of Credit Rating Agency with reference to the capability of the issuer to repay the debt as per its terms. The rating is assigned by an independent credit rating agency based on substantial evaluation of key parameters of the entity. Standard and Poor’s (S &P), Moody’s and Fitch Ratings are some of the prominent examples of international rating agencies which has captured more than 95% of the credit rating business in an international market.
Global Economic Slowdown triggered by Corona Virus Outbreak has done tremendous damage to the world economy. The economic impact of lockdown is starting to be felt and will escalate in the coming months. It is expected that nearly 200 million global full-time jobs will be lost in the next 3 months due to the pandemic. The worst affected sectors are Service (Hotel, Restaurants, Airlines, and Travel), Retail, and Manufacturing. If we look at South Asia, millions of jobs are at risk after Covid-19 Lockdown. As factories shutdown, Industry labors are having a tough time to feed their families. However, Governments of few South Asian countries have promised to conduct a welfare program for their citizens.
The year 2076 B.S was not good for cement sales in Nepal due to high competition between cement companies and because of some other factors, cement sales were increasing at a slow pace.
Although the COVID-19 pandemic feels unprecedented, it is not the first time that exogenous forces have radically disrupted civilian life. The most common parallel is to the American mobilization for World War II. In December 1940 – almost a year before Pearl Harbor, and as Britain stood virtually alone against Nazi aggression – US President Franklin D. Roosevelt declared, “We must be the great arsenal of democracy.”
The COVID-19 pandemic has hit EU member states hard, and will continue to confront the bloc with significant economic challenges. Yet, from a macroeconomic perspective, Europe’s policy response so far has been encouraging, because it includes strong incentives for sustainable growth, solidarity, and economic stability.
In response to the COVID-19 pandemic, the US Federal Reserve will buy unlimited quantities of Treasury bonds, the Bank of England will purchase £200 billion ($250 billion) of gilts, and the European Central Bank up to €750 billion ($815 billion) of eurozone bonds. Almost certainly, central banks will end up providing monetary finance to fund fiscal deficits. The only question is whether they should make that explicit.
Global economy is in crisis, anywhere you look there seems to be doom and gloom. COVID is causing havoc. Perhaps it is leveling the world treating everybody equally. The richest of the rich Saudi royals are not spared. The only Superpower seems to be on the knees. The world capital of everything from international finance to international diplomacy, from international travel to International fashion, New York has also turned into the world capital of Corona. SARS-CoV-2 is perhaps the true leveler proving that ‘the world is indeed flat’.
Last week, the Eurogroup of eurozone finance ministers, having acknowledged that nobody is to blame for the COVID-19 crisis, agreed to a deal to mitigate its economic fallout. The agreement includes €25 billion ($27.2 billion) in fresh funding for the European Investment Bank, €250 billion ($272 billion) for the European Stability Mechanism (ESM), and €100 billion ($109 billion) for the creation of a new instrument through which the European Commission can help member states manage their looming unemployment crises. All told, the package amounts to a substantial sum: around €500 billion in loans (when accounting for the leverage of the EIB’s programs).
As the COVID-19 virus spreads globally, economic paralysis and unemployment follow in its wake. But the economic fallout of the pandemic in most emerging and developing economies is likely to be far worse than anything we have seen in China, Europe, or the United States. This is no time to expect them to meet their debt payments, either to private or official creditors.
The climate change, that is, the change of the global climate and in particular the changes in meteorological conditions that extend on a large time scale, is a major global existential threat, much greater than the coronavirus.
The European Union and the eurozone are approaching their second defining moment in a decade. The first was the debt crisis that started in 2010 and was quelled by European Central Bank President Mario Draghi’s July 2012 pledge that the ECB was ready to do “whatever it takes” to preserve the euro. The ECB backed up Draghi’s declaration by introducing the outright monetary transactions (OMT) scheme, an emergency sovereign-bond-purchasing program that fortunately never had to be used.
With COVID-19 unleashing devastation across the Globe, the world economy is on lockdown now. The economic damage from COVID-19 pandemic is already tangible since major factor of micro economy (Agriculture, service, industry & trade) has adversely affected. Governments and their central banks around the world are wasting no time in dealing with the health and economic implications of this crisis.
Despite a deep recession in 2008 and a slow recovery thereafter, the first two decades of the twenty-first century were generally a time of economic progress in most advanced economies. Real (inflation-adjusted) per capita GDP in the OECD grew at a compound annual rate of 1.15% between 2000 and 2018, and employment levels steadily increased, hitting record highs in some countries.