World Economies take measures to curb global slowdown
Regarding the recession, US President Donald Trump had said a day before on a question that “this could happen. But we are not looking at this matter from the perspective of coronaviruse”. While on Tuesday, New Zealand Finance Minister Grant Robertson admitted that the economic slowdown is almost certain. He said in Parliament, “We are fighting an external force which is beyond our control and which has caused havoc all over the world.” We are ready to fight. Robertson said that this package is only the first step of the government regarding relief. He said that other reliefs will be announced in the annual budget in May.
US $ 7.3 billion relief package announced
New Zealand on Tuesday announced a relief package of US $ 12.1 billion, or US $ 7.3 billion, to offset the impact on the economy from the corona virus outbreak. New Zealand Finance Minister Grant Robertson admitted that the economic slowdown was almost certain. However, he said that in this package, emphasis has been laid on salary subsidy, tax relief and promotion of health and medical sector. This will lessen the impact of the epidemic on the economy.
Trump’s response to recession
Regarding the recession, US President Donald Trump had said a day before on a question that “this could happen. But we are not looking at this matter from the perspective of coronaviruse. I think the demand for the stock market and the economy is hidden somewhere. Once we deal with recent situations. After this you will see a big boom in the economy.”
At the same time, to save the economy, the US central bank has cut interest rate by one percent. The Fed has also decided to inject $ 700 billion into the US economy. It has announced to buy $ 500 billion and $ 200 billion of government bonds. At the same time, the New Zealand central bank has also cut interest rates by 75 basis points on Monday after an emergency meeting. Central banks in many countries have reduced policy rates.
| Bank Name | Basis Point Cut |
| Federal Reserve US | 150 |
| Bank of England | 50 |
| Bank of Canada | 50 |
| Hong Kong Monetary Authority | 50 |
| Qatar Central Bank | 50 |
| Central Bank Arab Emirates | 50 |
| Central Bank of Bahrain | 50 |
| Saudi Arabian Monetary Authority | 50 |
| Central bank australia | 25 |
| Bank of Malaysia | 25 |
US airlines ask for $ 50 billion relief package
Airlines around the world are cutting services due to the coronavirus outbreak. Meanwhile, US aviation companies have demanded a relief package of $ 50 billion from the government. At the same time, aviation companies in India also immediately demanded a 30 percent reduction in aeronautical charges for the next six months. Airlines for America, an organization of American airlines, said on Monday that there has been an unexpected reduction in demand and the situation is deteriorating day by day. The organization said it is worse than the situation that arose after the 9/11 terrorist attack.
British Airways will cut flight capacity by 75 percent
IAG, owned by British Airways and Spanish airline Iberia, said it would cut flight capacity by 75 percent during April-May. German airline Lufthansa also announced a reduction in flight capacity by up to 90 percent. Britain’s Virgin Atlantic has said that it has decided to erect 75 percent of the aircraft.
