Governments around the world are trying to speed up the process of curbing the impact of the coronavirus crisis on the economy, while some countries have yet to agree on programs that should help society deal with the outbreak.
U.S. Congress OKs Economic Aid Package
The United States Congress on Thursday passed a $484 billion economic relief package that covers various aspects of society and health amid the ongoing COVID-19 crisis in the country, the Memphis Business Journal reported.
The said package will involve small business, wherein replenishment for small businesses in the form of loans will be included. Furthermore, the package should also further expand coronavirus testing across the country.
Finally, the recently-passed package, which has been sent over to U.S. President Donald Trump, is expected to cover additional aid to hospitals in the battle against the fast-spreading disease that led to overwhelming figures in some American medical facilities.
$310 billion will go to the so-called Paycheck Protection Program. The said program provides loans for small businesses, while $60 billion will be allocated for loans specifically tendered under the Small Business Administration disaster unit.
Goldman Sachs Tracker Indicates Massive Downturn in Consumer Activity
Goldman Sachs developed a Global Activity Tracker amid the ongoing COVID-19 situation. The said tracker helps corporations and banks keep track of the level of economic damage brought about by the novel coronavirus.
According to Business Insider, the tracker saw a 73 percent year-on-year decline for the U.S. Consumer Activity aspect, while the U.S. Industrial Tracker also saw a decline of 19 percent year-on-year for the week of April 18.
The tracker also indicated that consumer activity was down 25 percent year-on-year in China. On the other hand, the said percentage is already a significant hike from the 70 percent slump in January, when the coronavirus spread like wildfire in the country.
EU Leaders Divided in Economic Rebound Program
European countries once again displayed a sense of division during the video conference of 27 European Union leaders as they discussed some of the proposals presented as part of the efforts to curb the economic impact of the coronavirus crisis, NPR reported.
The proposals included one that focused on grants. The said proposal included the potential issuance of grants for economies across the EU that are hardest-hit due to the closure of businesses and stoppage of corporate operations.
European leaders are divided in terms of which economic recovery method should be used: grants or loans. Netherlands and Austria are just two of the nations that believe loans will be more effective in helping the EU economy recover.
Spain, France, and Italy, are among the countries that believe the use of grants is more effective in pushing the EU towards recovery.
It remains to be seen whether EU leaders will finally try to meet halfway regarding the economic recovery program that should help the European economy get back on its feet.
