IMF Forecasts Deeper Global Recession from Growing Virus Threat
“The International Monetary Fund downgraded its outlook for the coronavirus-ravaged world economy, projecting a significantly deeper recession and slower recovery than it anticipated just two months ago. The fund said Wednesday it now expected global gross domestic product to shrink 4.9% this year, more than the 3% predicted in April. For 2021, the fund forecast growth of 5.4%, down from 5.8%.”
Spain Gets Governor’s Nudge for Plans to Boost $113 Billion Aid
“Spain’s government is getting a nudge from the country’s central bank to deliver more economic aid and avoid the risk of permanent damage from the coronavirus crisis. Bank of Spain Governor Pablo Hernandez de Cos on Tuesday urged lawmakers to increase the country’s 100 billion euro ($113 billion) state-backed loan guarantee fund, and the extension of furloughs that ensured millions of Spaniards received at least a portion of their salaries during one of Europe’s strictest lockdowns.”
Japan Struggles to Pump Out $2 Trillion in Virus-Response Aid
“Prime Minister Shinzo Abe declared his virus-response package to be the world’s biggest, yet much of it remains stuck in Japan’s aging administrative pipeline, blocked by paperwork, complexity and a lack of staff. Almost 40% of the funds budgeted for cash handouts to households still haven’t reached people despite their approval in late April, according to Japan’s internal affairs ministry citing figures to the end of last week.”
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