By Oisin Sweeney •
Published: 22 Nov 2020 • 20:19
THE global Covid bailout is running at $19.5 trillion, which will be paid by world governments and central banks according to the IMF.
Governments and central banks have promised to pay out $19.5 trillion in an attempt to save the global economy from the fallout of Covid-19.
The enormous sum will ‘put a floor under the world economy’ said the International Monetary Fund (IMF) in their annual report. The IMF’s Managing Director, Kristalina Georgieva, said that ‘countries now face a long ascent that will be difficult, uneven, uncertain and prone to setbacks’. Despite the scale and speed of recovery efforts, experts warn that the world is sliding into the worst recession since the Great Depression of the 1930s.
The levels of employment and economic activity have plummeted far below pre-pandemic levels in the US and Europe. Ten million Americans have lost their jobs this year, while several European economies including Spain and Italy have seen their economies shattered by the virus. An EU recovery package of 800 billion euros, which took months to negotiate, is now in jeopardy as Poland and Hungary move to block it. Their respective right-wing governments are against the package’s stipulation that recipient states must abide by the EU’s standard of ‘respect for rule of law’.
Capital Economics, a London based think tank, has warned that withdrawing fiscal support is the ‘biggest short term risk’ governments could take. Of the massive $19.5 trillion recovery fund, 12 trillion will come from governments and the rest from central banks.
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Oisin is an Irish writer based in Seville, the sunny capital of Andalucia. After starting his working life as a bookseller, he moved into journalism and cut his teeth as a reporter at one of Ireland's biggest news websites. Since joining Euro Weekly News in November, he has enjoyed covering the latest stories from Seville, Spain and further afield - with special interests in crime, cybersecurity, and European politics. Anyone who can pronounce his name first try gets a free cerveza...
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