According to the IMF, global fiscal support in response to the crisis will be more than 9 trillion US dollars, approximately 12% of world GDP. This premature, clearly rushed, probably excessive, and often misguided chain of so-called stimulus plans will distort public finances in a way in which we have not seen since World War II. The enormous increase in public spending and the fall in output will lead to a global government debt figure close to 105% of GDP.
Continue reading The World Is Drowning In DebtCategory Archives: Global Economy
The Slow And Painful Path To Jobs Recovery
The United States recovered 4.8 million jobs in June, adding to May’s 2.5 million jobs rebound. The United States employment recovery is faster and stronger than the Eurozone one, which has over 40 million workers on subsidized jobless schemes added to a 7.4% unemployment that is expected to rise to 11% by September.
Continue reading The Slow And Painful Path To Jobs RecoveryA Real Recovery Demands a Back-to-Basics Approach
The macro data published in May and June so far shows a lackluster recovery, with significant challenges both in the pace of unemployment reduction and the improvement in consumption and investment.
According to the United Nations, global foreign direct investment is expected to fall 40 percent from pre-COVID levels in 2021, while U.S. and eurozone unemployment figures are likely to remain elevated even in a recovery.
Spain’s Economic Freedom Improves—But Post-COVID Risks Are Enormous (Heritage Foundation)
THIS REPORT WAS PUBLISHED BY THE HERITAGE FOUNDATION HERE.
The Spanish economy is under serious threat. The Sánchez Administration is using the excuse of a serious health crisis to enact policies that undermine investor and business security and restrict personal and economic freedom. Such interventionism will trap the economy by increasing fiscal imbalances—Spain’s historical mistake—and put the country on a destructive track that will erode freedom and result in excessive spending, more debt, and rigidity. The long-term social and economic consequences of these mistakes can be enormous. Instead, the government should implement serious measures to enhance economic freedom and allow a strong recovery soon.
Continue reading Spain’s Economic Freedom Improves—But Post-COVID Risks Are Enormous (Heritage Foundation)