The coronavirus is suffocating the global economy. However, it is expected that, in the future, the virus will loosen its grip and revive entrepreneurship. Still, the consequences are severe. Those were the warnings of Kristalina Georgieva, the head of the International Monetary Fund.
Ukrainian President Volodymyr Zelensky has appointed the former President of Georgia, and the head of the Odessa Regional State Administration, Mikheil Saakashvili as the Chairman of the Executive Committee for Reforms. This is stated in the decree, “Issues of the National Council of Reforms and the Executive Committee of Reforms,” signed by Zelensky on Thursday, May 7.
The Executive Board of the International Monetary Fund (IMF) has approved a $1.386 billion loan to Pakistan to tackle the COVID-19 outbreak. This loan was granted under the IMF’s Rapid Financing Instrument, and is equivalent to SDR 1,015.5 million. This is about half of Pakistan’s quota.
The Iranian President, Hassan Rouhani, asked the International Monetary Fund (IMF) on Wednesday to grant his country, among the most affected by the new coronavirus, a $5 billion emergency loan to combat the pandemic. “I urge international organizations to fulfill their duties,” Rouhani said.
The European Union has pledged €20 million in aid to help Iran mitigate the effects of coronavirus, which is ravaging the economy. According to EU Foreign Affairs representative, Josep Borrell, “we’ve not been able to provide a lot of humanitarian help, but there is some €20 million in the pipeline . . . that we expect to be delivered over the next weeks.”
Venezuela is experiencing possibly the worst humanitarian crisis in the world, sans the Covid-19 situation. The Latin-American nation is not only struggling to contain the epidemic but also trying to tackle deep-seated economic issues that have plagued it for years. They include US sanctions, prevalent corruption, a skyrocketing inflation rate that has surpassed 10 million percent in the past decade, and a collapsed infrastructural system.
The Foreign Minister of the Islamic Republic of Iran sent a letter to the UN Secretary-General calling for the end of US government sanctions against Iran. He has said that US sanctions are a major obstacle to combating the Coronavirus outbreak in Iran. Iranian news agencies, including ISNA, have sent a copy of Mohammad Javad Zarif’s letter to the heads of all international organizations and foreign ministers around the world.
The government of Ecuador and the Confederation of Indigenous Nationalities of Ecuador (CONAIE) announced an agreement Sunday night that is likely to bring to an end a wave of 11 days of protests in the country and restore peace. President Lenin Moreno stepped back and agreed to the repeal of the decree removing fuel subsidies. Protesters celebrated the deal on the streets of the capital, Quito.
Nearly 800 people have been detained in Ecuador since last Thursday when protests broke out against the elimination of fuel subsidies, in the framework of an agreement with the International Monetary Fund. Guayaquil and Quito cities in Ecuador recorded the highest number of arrests. The most numerous demonstrations on Wednesday were registered in the capital.
Prices rose 4% in August, as a result of the devaluation suffered by the Peso a month ago, and year-on-year inflation stood at 54.5%. The data is more serious when it comes to food, which increased by 4.5%. Shortly before the National Statistics Institute released the data, the Chamber of Deputies approved a declaration of food emergency that meant a 50% increase in the budget.
No she is not in charge of Germany or a major country but she will soon be in charge of the European Central Bank– the European version of the United States Federal Reserve. Her name is Christine Lagarde and she has won European Union support to become the first female President of the European Central Bank (ECB). It will be the first time a women has been placed in charge of all European banking, as the ECB is one of the largest financial institutions in the World.
- Year to date the Shanghai composite had skyrocketed more than 30 percent since its last close in 2018. The Shenzhen component has also seen massive gains of more than 40 percent in that same time period.
- The slowdown in Chinese growth has become the latest looming cloud over the global economy. The advice from Beijing was not to worry. China is slowing down but it’s not going to be a disaster. “China has been able to avoid financial crisis in the last 40 years. We have a very top down approach to financial risk management.”
- Official data suggested that Germany avoided a recession at the end of 2018 but confirmed a sharp slowdown in growth last year as Europe’s largest economy cooled off from boom times. Economic growth sank to 1.5 percent in 2018 from 2.2 percent in the previous two years, federal statistics authority.
- In emerging and developing Asia, the growth forecast will dip from 6.5 per cent in 2018 to 6.3 per cent in 2019 and 6.4 per cent in 2020. Despite fiscal stimulus that offsets some of the impact of higher US tariffs, China’s economy will slow due to the combined influence of needed financial regulatory tightening and trade tensions with the United States.
- A no-deal Brexit could trigger a further slowdown in global growth, the International Monetary Fund (IMF) has warned. The IMF fund noted the possibility of “a disruptive no-deal Brexit with negative cross-border spillovers” had risen in recent months, while increased euro-scepticism might impact European parliamentary election outcomes in May.
- Canada’s wholesale sales dropped 1% in November, the biggest one-month decline for the sector since March 2016. Factory sales were down 1.4%, the largest drop since January. Both sectors also recorded declines in volumes. The data confirm Canada’s expansion has likely entered what economists believe is a temporary slowdown that is expected to last through the first few months of this year.
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