The global economy and the rest of the world are heading for possibly the worst recession period in recent history. An unprecedented worldwide travel ban, community and countrywide lockdowns and work stoppages are certain to bring the global economy to its knees.
The first to feel the pinch from the spreading corona virus are airlines, hotels and restaurants after several nations restricted the travel of their citizens in and out of their boundaries. The lockdown, meanwhile, has robbed ordinary workers of their only source of income and killed the earnings of small businesses.
Governments across the globe have quickly realized the debilitating impact of the virus outbreak on the economy. They are preparing huge financial packages to protect their citizens from the outbreak and provide relief to displaced workers, especially those who rely on their daily wages. Small businesses which have little capital are equally hit by the virus.
The US is leading the fightback against the outbreak. The White House and lawmakers are negotiating a $1.3-trillion package, considered the biggest federal emergency plans ever. This could include up to $500 billion in direct check payments to Americans, and $300 billion in loans to small businesses. Treasury Secretary Steven Mnuchin said it might also include $300 billion in deferred tax payments.
The European Central Bank, in the meantime, plans to spend more than $800 billion to buy bonds to give financial markets some much-needed liquidity. ECB boss Christine Lagarde tweeted “extraordinary times require extraordinary action. There are no limits to our commitment to the euro.”
Here in the Philippines, economic livelihoods are at stake for millions of Filipinos and small entrepreneurs. The economic team of the Duterte administration rolled out a P27.1-billion package of priority actions to help front-liners fight the coronavirus disease 2019 pandemic and provide economic relief to people and sectors affected by the slowdown in economic activity.
The Philippines foremost must assist workers who have no other means of supporting their family by way of wage subsidy, and provide support to displaced establishments. The assistance must be extended quickly to avert social unrest and a breakdown in peace and order.
