The COVID-19 outbreak has worsened since the previous update and now totals over 435,000 cases worldwide. According to data compiled by John Hopkins University, countries with the largest outbreaks are as follows: China (81,661 cases), Italy (69,176), Spain (47,610), Germany (34,009), Iran (27,017), France (22,637), Switzerland (10,171), and South Korea (9,137). The situation in the United States has deteriorated along the lines that many were predicting, and it now accounts for 55,225 cases, prompting WHO to warn earlier this week that the country risks becoming the new ‘epicenter’ of the COVID-19 pandemic if it fails to stem the explosive growth of new infections there.
Shutdowns are deepening and multiplying on every continent, with the Indian government announcing what it calls a ‘total lockdown’ on Tuesday. Many now believe a global recession is imminent, and some have even gone so far as to invoke the possibility of a depression. Here are some of the significant economic developments from the past week:
- US equity markets registered huge gains on Tuesday on news that a massive stimulus package would finally make it through Congress. At end of trading, the Dow was up 11% and the S&P 500 9.4% – their biggest one-day jump since October 2008. Gains were echoed in Asian and European markets as well.
- Congress has agreed on the largest stimulus package in US history, worth an estimated $2 trillion. The bill creates a $500 billion fund that will provide loans to distressed businesses and city and state governments. Oversight and procedures governing this fund were a bone of contention in sparring between Senate Republicans and Democrats over the weekend. In addition, the bill is said to include $350 billion in small-business loans and expanded unemployment benefits worth $200 billion. Some $130 billion is also included to backstop the health system, which will be placed under immense strain in the weeks to come. At least $50 billion will go to the embattled airline industry but, as a recent article on the Financial Times argues, this is likely to be the first of many bailouts should COVID-19 linger for months to come. Finally, $150 billion will be earmarked for state and local governments.
