Our planet is facing the worst ever pandemic, but we are determined to through with this anyway with our unanimous and untiring efforts the world over.
Although the whole world is badly hit by coronavirus and COVID 19 is proving the worst pandemic of the century so far, the four hardest-hit countries are the USA, the UK, Italy, and Spain. It is not possible to cover the situation in all the countries in a short article like this. So, we will discuss the four hardest-hit countries only. Here we go now.
Current Situation of Coronavirus in the USA
This great country of the world is facing a lot of troubles while tackling COVID 19. The following are the stats regarding the current status of the patients down with coronavirus.
- Total number of patients: 1095304
- New cases: 281
- Total number of deaths: 63871
- New deaths: 15
- Total recovered: 155737
- Active cases 875696
- Critical cases 15226
Economic Fallout in the USA During Covid-19 Pandemic
Coronavirus has badly hit the American economy in several ways. The following are the major setbacks currently resulted from the quarantines and lockdowns against the spread of coronavirus.
- The US stock market has got sunk one fourth from its climax last month. This crisis has wiped out three years of gains in a sudden rush.
- Unemployment is a sure sign of economic recession. Nowadays, unemployment is increasing in the USA way faster than it did in the 2008 recession. Last week, the labor department claimed that 3.8 million Americans filed for jobless claims.
- The household is not making major purchases nowadays because of the fears regarding finances and the prospects of their jobs. As a result, consumption has slumped as the businesses are closed and no earnings are there. In normal days, consumption makes up 70% of America’s GDP (gross domestic product).
- Investment contributes 20% to the American GDP which has been severely hit because businesses are putting off investments in wait of the total clarity from COVID-19 pandemic.
- Owing to the less demand for their products in the market, many companies have closed their factories temporarily. Ford and GM, for instance, have closed their car factories recently. So, a sheer decline has also taken place in the field of manufacturing which normally constitutes 11% to the U.S. gross domestic product.
- A major setback has also occurred in the industry of Arts and entertainment and that of restaurants which otherwise make up almost 4.2% of the GDP.
- An extreme shock has also come to the U.S. economy as more and more firms are laying off their staff due to having no revenue to pay their salaries. This is bringing a great depression and frustration to the already hard-hit employees.
How the U.S. Government is Handling the Covid-19 Pandemic
At this critical hour of crucial crisis, President Donald Trump has come forward actively and taken some bold steps towards handling the pandemic wisely. All the 50 states have declared an emergency and the governments at the local, state, and federal levels have made serious efforts to combat the calamity. The following are the major steps taken by the federal government, Congress, the executive branch, and the Federal Reserve which operates independently from the political officials.
- President Donald Trump signed an emergency spending package worth $8.3 billion. Out of this, $3 billion were allocated for the vaccine research while the rest were provided to the authorities to contain the outbreak.
- The Federal Reserve announced to inject $1.5 trillion into the financial system. This has addressed the liquidity concerns and initially sent the markets higher and made them calm.
- President Donald Trump has waived off all the interest on the federal student loan. Steps are being taken to adjust the respective loan installments as per the orders of the president.
- President Trump has wisely declared a national emergency throughout the country.
He was reluctant to declare it at first but once he declared it, it proved a real blessing.
- The Federal Reserve has cut rates to zero and launched a $700 billion quantitative easing program. The amount will be divided into two parts: $500 billion will go for purchases while $200 billion will be spent for agency-backed mortgage securities. The central bank also announced later on that it would buy municipal bonds as well. Its chairman has also expressed his intentions that these near-zero rates will hold there until the economy is back on track again.
- The central bank has taken steps to keep money flowing by establishing a Primary Dealer Credit Facility and a Commercial Dealer Funding Facility. The former will provide short-term funding to big financial firms while the latter will purchase corporate paper from issuers.
- President Trump has signed a coronavirus relief plan to expand paid leave. The plan has $100 billion to manage provisions for emergency paid leave for workers at big businesses, expanded unemployment insurance, and free testing.
- The Education Department has facilitated the borrowers to pause student loan payments for at least 60 days during the crisis.
- Donald Trump has announced that he would restore the Korean War-era Defense Production Act. This act will enable the government to support the businesses to manufacture the supplies needed during the coronavirus crises like medical masks, ventilators, gloves, and testing swabs.
- Fed pledges to remove limits on its asset purchases, adding corporate bonds to its asset purchases.
Current Situation of Coronavirus in the UK
- Total number of patients: 186599
- Total number of deaths: 28446
- Total patients recovered: N/A
- Total new cases: 4339
- Total new deaths: 315
- Total number of active cases: 153785
- Total number of critical cases: 1559
The British Prime Minister, Boris Johnson, was tested positive for coronavirus on March, 27. He was admitted to the St. Thomas hospital, London on March, 29 and was shifted to the ICU on April, 6. He was shifted back to the standard ward on April, 9. He recovered steadily and was released from the hospital on April, 12. Now, he has got fully recovered.
Economic Fallout in the UK during COVID-19 Pandemic
The followings are the worst economic effects of coronavirus in the UK.
- A majority of households are facing downfalls in their income and many are struggling hard to pay their bills.
- A sheer rise in the number of unemployed people has been observed since the crisis hit.
- Many operating businesses have cut their working hours.
- There have been noted huge changes in inflation during COVID-19 Pandemic.
- The GDP has fallen fast and the general economic activity has slowed down appreciably.
- The consumer’s confidence has lowered badly.
- Overall UK trade has fallen sharply, as the UK shipping has also been falling steadily.
- Financial markets are in high demand for government debt.
Steps Taken by the UK Government to Handle Covid-19 Pandemic
The following is the list of important economic steps taken by the UK government against the COVID-19 pandemic.
- Coronavirus Large Business Interruption Loan Scheme for larger companies and firms.
- Coronavirus Business Interruption Loan Scheme for all viable businesses.
- Government-backed and guaranteed loans.
- Support for the aviation industry.
- Business rates relief and cash grants.
- Her Majesty’s revenue and customs’ time to pay service.
- Relaxation to planning rules.
- Life sciences investment.
Current Situation of Coronavirus in Italy
- Total number of coronavirus patients: 209328
- Total number of deaths: 28710
- Total new cases: 1900
- Total new deaths: 474
- Total recovered cases: 81654
- Total active cases: 100179
- Total active cases: 1501
The Situation of the Economic Fallout in Italy
The followings are the areas in which coronavirus has hit the Italian economy hard.
- GDP growth in Italy has badly hit.
- The rate of unemployment has risen abruptly in Italy.
- The government deficit has increased in Italy.
- The annual percentage change in industrial production has hit hard in Italy.
- The annual percentage change in domestic demand has been affected in Italy.
- A severe effect on the imports of Italy has been observed.
- Sheer impact on the exports of Italy has been noticed during COVID- 19 pandemic.
- The department of tourism and transport has got extremely affected.
- The agriculture and food industry have also got disturbed very severely.
- Companies and freelancers are also hit hard.
- E-commerce and media have got very much disturbed.
- Sports and entertainment have also received a bad impact on COVID-19 Pandemic.
Read Also: Current Coronavirus Situation in Italy
Steps Taken by the Italian Government to Cope Against the Economic Fallout During the Covid-19 Pandemic
- A ‘Liquidity Decree’ to assist businesses by providing loan guarantees, government assumption of non-market risks, and certain targeted tax relief.
- Payment deferrals, rate reductions, jurisdictional tax measures, and government reliefs.
- State compensation schemes for the unemployed in Italy.
- Moratorium on the payment of the corporate debt has been introduced.
- Liquidity shortages and facilitate access to financing.
- Central guarantee fund free of charge for the companies with less than 499 employees.
- Measures to support export, internationalization, and investment by businesses.
- Custom measures including duty relief and facilitation in payments.
- Steps to support the production and supply of medical devices and personal protective equipment.
- All industrial and commercial activities suspended, response to coronavirus (COVID-19).
- Enhanced transparency in “listed companies” and disclosure requirements.
Current Situation of Coronavirus in Spain
- Total number of patients: 247122
- Total number of deaths: 25264
- Total number of new cases: 884
- Total number of new deaths: 164
- Total recovered patients: 148558
- Total number of active cases: 73300
- Total number of critical cases: 2386
Economic Fallout in Spain During Covid-19 Pandemic
- GDP falls 5.2% in the first quarter of this year.
- Trade, transportation, and hostelry are among the hardest-hit sectors.
- The Bank of Spain has fallen 4.7% in the first quarter.
- Retail trade and active employment have fallen 15% in April 2020.
- 285600 people got unemployed during the COVID-19 pandemic.
- The number of hours worked has fallen by 4.25%.
Steps Taken by the Spanish Government Against Covid-19 Economic Fallout
- Direct and indirect tax measures and jurisdictional tax measures and government reliefs in response to COVID-19.
- Payment deferrals and rate reductions on the part of the government.
- More flexible mechanisms for temporary adjustments of activity.
- State compensation schemes.
- Transitional financial support measures.
- Paid leave – Royal Decree 10 2020 (Application between March 30 and April 9, 2020).
- Minimum indispensable activity – Royal Decree 10 2020 (Application between March 30 and April 9, 2020).
- Guarantee of liquidity to sustain economic activity.
- Additional measures to enable an adequate response.
- Government launch of the first package of 100 billion euros measure.
- Government launch the second package of the 100 billion euros measure.
- Customs formalities reliefs.
- Suspension of the regime of liberalization of certain foreign direct investments in Spain.
- A moratorium of mortgage debt for the acquisition of the principal residence.
- Recoverable paid leave for workers employed by third parties who do not provide essential services).
- Extension of deadlines to file an appeal or economic-administrative claims.
- Exemption from the progressive fees of notarized AJD documents to the formalization deeds of contractual novation of loans and mortgages regulated in the first final provision of RDL.
- Temporary suspension of certain payments by electricity and natural gas retailers, and by distributors of manufactured gas and liquefied petroleum gas.