Dealing with the unforeseen challenges caused by the COVID-19 pandemic has taken a significant toll on people all across the world. This has badly impacted many big and small industries. Around 27 million youth in the age group of 20-30 years lost their jobs in April 2020 following a nationwide lockdown. According to CMIE weekly report, the unemployment rate has fallen from 27.1%to 24% for the week ended in May. To just cope with the huge disturbance created due to the pandemic COVID-19 the G20 (Group of 20) member states have been responding through fiscal packages.
The G20 (Group of Twenty) is an international forum for the governments and central bank governors from 19 countries and the European Union (EU). With the help of the fiscal packages, the country can bring back their economy on track. A Fiscal package is a package of economic measures put together by a government to stimulate a floundering economy. The objective of a stimulus package is to reinvigorate the economy and prevent or reverse a recession by boosting employment and spending also refer to monetary policies like lowering interest rates and quantitative easing.
According to some reports, shares the fiscal package to the pandemic stands now at $4.68 trillion. In which Japan has the highest fiscal response to the COVID-19 outbreak at $996.45 billion. Compared to the country’s 2019 Gross Domestic Product (GDP) of $5.110 the package is 19.5%. The United States has the second-highest fiscal response of $562.1 billion to mitigate the effects of the coronavirus pandemic. The amount represents 11% of the country’s GDP of $21.2 trillion. Australia with a GDP of $1.45 trillion has a fiscal response stands at $495.67 billion. On the other hand, Canada’s fiscal response is the fourth highest at $429.24 billion, representing 8.4% of the country’s $2.8 trillion. Brazil closes the top five categories of the G20 countries with a fiscal response package of $332.15 billion or 6.5% of the country’s GDP of $2.02 trillion. Other G20 countries with notable responses to the virus crisis include Poland ($316.82 billion), Germany ($250.39 billion), France ($204.4 billion), China ($194.18 billion), and Saudi Arabia ($163.52 billion) and the United Kingdom ($153.3 billion).
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Then it was been also researched their size was been researched about the fiscal packages of G20 countries in the response of the coronavirus crisis.
The Group of 20 major economies said on Tuesday that they would present a coronavirus action plan in two weeks to address the debt vulnerabilities of the poorest countries and deliver financial aid to emerging economies. The G20 countries will work with the group’s Financial Stability Board, set up after the 2008 financial crisis, to coordinate regulatory and supervisory measures taken in response to the coronavirus as it has not witnessed in the recent history.
As there is no doubt that this pandemic has badly impacted the world. But now the analysts have argued that the response needs a global approach and the G20 countries should give guidance. With a focus on economic recovery, countries are seeking to offer liquidity support to businesses to help them stay afloat and availing income support to vulnerable individuals.