Global lockdowns to contain the spread of coronavirus have been imposed for weeks – even months in some countries and are causing an economic catastrophe. Besides making job and salary cuts, many industries around the world are closing down their businesses leading to a loss of livelihood.
In fact, the economic scenario is at its worst in the USA due to the health outbreak and is expected to be at its lowest since the 1930s. Additionally, the employment rate in America has risen to 33 million since the middle of March. The EU has also announced its collective GDP to shrink by 7.4% this year.
Simply put, the situation is alarming and to reciprocate some damage, government authorities all over the world are announcing stimulus packages – reserved for catastrophic global economic collapse.
In this regard, Ceyhun Elgin, an economics professor at Columbia University collected responses from 166 different countries to compare the COVID-19 stimulus packages worldwide.
According to Elgin’s report, the USA has committed to the largest rescue package of any country in pure dollars terms over three phases - $8.3 billion, $192 billion, and $2.5 trillion. However, the U.S. measure equates to an estimated 13% of GDP.
On the other hand, Japan’s relief packages work out just over 21% of GDP, while Spain and Italy have announced stimulus packages estimated to be 7.3% and 5.7% of GDP respectively.