Global Economy Shaken by COVID... $54 Billion+ Emergency Funds Released

US Approves $8.2 Billion Emergency Budget Bill

Italy Doubles Budget Size

Hong Kong to Distribute Cash to Permanent Residents

S&P Lowers 2020 Asia-Pacific GDP Growth Forecast from 4.8% to 4.0%

[Asia Economy Reporter Kwon Jae-hee, New York=Correspondent Baek Jong-min] The total budget prepared by countries worldwide to respond to the novel coronavirus infection (COVID-19) has exceeded $50 billion. Apart from measures such as interest rate cuts to stimulate economies hit hard by the COVID-19 outbreak, countries are focusing on liquidity supply. This is due to the serious judgment of the sharp economic downturn caused by COVID-19. Standard & Poor's (S&P) announced on the 5th (local time) in a report that it lowered the real GDP growth forecast for the Asia-Pacific region this year from 4.8% to 4.0%. As the number of countries participating in response efforts is expected to increase due to the spread of COVID-19, the related budget size is expected to grow further.

According to Bloomberg News on the 5th (local time), emergency funds released by countries around the world including the US, South Korea, and Italy to respond to COVID-19 have reached approximately $54 billion (64 trillion KRW) so far. A significant portion of these funds is concentrated in Asian countries, while Italy is the most proactive in Europe in injecting emergency funds for economic stimulus.

The US Senate passed an $8.3 billion emergency budget bill for COVID-19 response, which had already passed the House, and sent it to the White House. Senators cast nearly unanimous votes with 96 in favor and 1 against, demonstrating bipartisan unity in the crisis. The bill will take effect immediately upon President Donald Trump's signature, which is expected to be done promptly given the gravity of the matter.

Italy doubled its COVID-19 response budget. Roberto Gualtieri, Italy's Minister of Economy, announced at a press conference that €7.5 billion (approximately 9.9222 trillion KRW) would be injected urgently. Initially, the Italian government planned to allocate an additional budget of $3.6 billion to support small and medium-sized enterprises, small business owners, and households, but the impact of COVID-19 on the real economy was greater than expected, leading to a significant increase in the budget.

Italy's northern region, which accounts for more than half of the country's gross domestic product (GDP), became the epicenter of COVID-19 spread, causing enormous economic damage. The tourism industry, which accounts for 13% of GDP, was also hit hard. Italy is expected to experience negative growth in the first and second quarters of this year, turning concerns about economic recession into reality. Experts predict that Italy's government target of around 0.5% growth for this year is effectively out of reach.

The Japanese government is also taking steps to stimulate the economy. Prime Minister Shinzo Abe said, "We will take additional fiscal stimulus measures depending on the economic damage caused by COVID-19," and added, "We have prepared spending plans supported by supplementary budgets."

In Hong Kong, a budget of HKD 120 billion (approximately 18.4 trillion KRW) has been allocated for COVID-19 response. Notably, permanent residents aged 18 and over will receive HKD 10,000 (about 1.55 million KRW) in cash. The number of cash recipients is about 7 million, with a required budget of HKD 71 billion. The government will pay one month's rent for low-income tenants and waive examination fees for the Hong Kong equivalent of the college entrance exam.

In Taiwan, a stimulus package worth TWD 60 billion (approximately 2.4 trillion KRW) has already passed the legislature.

Among ASEAN countries, Malaysia announced a "2020 Economic Stimulus Package" to support tourism and other sectors hit by COVID-19, pledging to spend MYR 20 billion (approximately 5.7 trillion KRW). The Malaysian government plans to raise the necessary funds by issuing government bonds. Indonesia is also focusing on tourism support with a budget of IDR 10.3 trillion (about 900 billion KRW). Singapore announced it will use SGD 5.6 billion (approximately 4.86 trillion KRW) to minimize the economic impact of COVID-19.

The Australian government is also weighing stimulus measures. The Reserve Bank of Australia lowered the benchmark interest rate to a historic low of 0.5% on the 3rd. Additional interest rate cuts and fiscal injections are also under consideration.

This content was produced with the assistance of AI translation services.