Now we have recriminations over the pandemic potentially exacerbating the protectionism that was already slowing the global economy to a crawl in 2019:

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“There are fears Britain could be dragged into a global trade war with China after Beijing slapped an 80 per cent tariff on Australian exports as punishment for demanding an independent coronavirus inquiry – which 100 nations including the UK supported.

“On Monday, the World Health Organization bowed to calls from most of its member states to launch an independent probe into how it managed the international response to coronavirus, which has been clouded by finger-pointing between the US and China.

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“The ‘comprehensive evaluation’ over coronavirus, sought by a coalition of African, European and other countries, is intended to review ‘lessons learned’ from WHO’s coordination of the global response to the virus outbreak.

“Donald Trump took the row with China further last night when he threatened to permanently cut off funding for the WHO, which he has accused of bias towards Beijing.”

https://www.dailymail.co.uk/news/article-8332719/Fears-global-trade-war-China-Beijing-slaps-80-cent-tariff-Australian-exports.html


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The COVID-19 outbreak unleashed an economic catastrophe [in the US].

“The stock market is betting that it will be brutal but short-lived, thanks to massive infusions of monetary and fiscal help. These charts show how brutal it has been. It remains to be seen if it will be as short-lived as the market hopes.”

https://www.forbes.com/sites/raulelizalde/2020/05/18/the-economic-devastation-in-6-charts/#651174583364


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“…state and federal jobless benefits aren’t getting to millions who are eligible and need the money.

“A report from the Brookings Institution’s Hamilton Project finds that according to the Treasury Department, federal and state governments had sent out $48 billion in unemployment checks by the end of April. But the amount of income that Americans lost in April from layoffs and lack of work due to the pandemic was at least $80 billion.”

https://www.marketplace.org/2020/05/18/half-of-americans-who-lost-work-or-wages-are-getting-0-jobless-benefits/


Canadian cities are on the verge of a potential financial crisis caused by dropping revenues and rising costs during the COVID-19 pandemic, and they’re asking the federal government to step in.”

https://www.cbc.ca/player/play/1739615299544


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The number of people claiming unemployment benefits in the U.K. soared in April, as the coronavirus outbreak created mass job losses in the country, the latest data showed.

“U.K. jobless claims rose by 856,500 to 2.097 million, the Office for National Statistics (ONS) said on Tuesday…”

https://www.cnbc.com/2020/05/19/uk-jobless-claims-rise-by-70percent-in-april-to-2point1-million.html


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A trail of hunger left by COVID-19 is flooding the streets of Madrid.

“Spain has recently made huge strides in curbing its COVID-19 outbreak. But millions of residents are now paying the price of weeks of economic shutdown.”

https://www.euronews.com/2020/05/18/coronavirus-fallout-hunger-queues-in-madrid-in-wake-of-covid-19-lockdown


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Spain’s two main independent institutions have issued warnings about the steps that must be taken to avoid a debt crisis that could drag down the economy in the wake of the coronavirus recovery effort

“”What’s required from Europe is “a risk-sharing scheme to finance states in comparable conditions beyond the European Central Bank (ECB),” Bank of Spain governor Pablo Hernández de Cos said.”

https://english.elpais.com/spanish_news/2020-05-18/bank-of-spain-asks-for-cuts-predicts-bigger-slump.html


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So far this year, new car registrations [in Europe] are down 42.4%, with a drop of 83.8% in April on top of falls of 55.6% in March, 7.2% in February and 8.2% in January.

“The United Kingdom, Italy, France and Spain were the most affected markets, with falls of 97.3%, 97.6%, 88.9% and 96.5% respectively…”

http://thecorner.eu/news-europe/new-car-registrations-in-europes-five-major-markets-fell-by-83-8-y-o-y-in-april-european-sales-will-slump-by-nearly-25-in-2020/86248/


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“…it could take ten years for the European car industry to recover. For that to happen, he says there has to be above all a general economic recovery and a positive development in the job market.

“If people have the feeling they’re going to lose their jobs, they’re not going to buy a new car,” he said.”

https://www.swissinfo.ch/eng/covid-19-and-transport_slump-in-car-sales-risks–garage-death-/45768552


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A number of protests against the government’s coronavirus policy and restrictive measures took place in various Germany cities, including Berlin, Munich and Stuttgart, on Saturday.

“Lockdown fatigue has grown in Europe despite the gradual easing of restrictions.”

https://www.cnbc.com/2020/05/18/anti-lockdown-protests-germany-uk-and-poland.html


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European banks could face greater credit losses from the economic impact of Covid-19 than those suffered in the aftermath of the global financial crisis — and what supervisory bodies usually test for…

“…the European banking sector could face capital and liquidity challenges.”

https://www.fnlondon.com/articles/european-banks-credit-losses-could-exceed-global-financial-crisis-20200518


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Like other small businesses around the world suffering steep declines with the spread of coronavirus, businesses in Jordan have had their profits take a pounding during the holy month of Ramadan

“Many small businesses – ones that prior to the pandemic anticipated a busy sales season during Ramadan but ended up shuttering their stores instead – are now facing mountains of debt or are on the brink of bankruptcy.”

https://www.aljazeera.com/news/2020/05/jordan-business-owners-fear-financial-ruin-lockdown-200518140649084.html


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For India, the Covid-19 pandemic has brought about general starvation.

“This can be seen all around. From households to businesses and the government, each is famished. Households in large numbers are starved of jobs, occupation and even food. Firms are credit-starved across the board and the government is resource-starved and short of revenue.”

https://www.telegraphindia.com/opinion/coronavirus-for-india-the-covid-19-pandemic-has-brought-about-general-starvation/cid/1774030


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While speaking about the economic stimulus package that was unveiled by Union Finance Minister Nirmala Sitharaman in several tranches, Swaminathan Aiyar, Consulting Editor, ET Now said that “economic package may be a sedative, not a stimulus.”

“He said that “This will not back demand. A stimulus package is something that will increase the GDP.””

https://www.timesnownews.com/business-economy/economy/article/economic-package-may-be-a-sedative-not-a-stimulus-says-swaminathan-aiyar/593752


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Lockdowns around the world have dramatically reduced the number of street protests and political demonstrations.

“Photographs taken in Bangkok in May contrast with images from 10 years ago when the capital was in the throes of anti-government protests and occupations which culminated in a military crackdown that cost dozens of lives.”

https://www.theguardian.com/world/2020/may/19/protests-and-lockdown-in-bangkok-then-and-now


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Deflationary concerns are rising with the economy remaining sluggish and consumer prices moving in that direction.

“The Bank of Korea announced on May 18 that import prices dropped 14.1 percent year on year last month.”

http://www.businesskorea.co.kr/news/articleView.html?idxno=45952


Australia is facing an “unprecedented” economic contraction due to the coronavirus pandemic, though massive fiscal and monetary stimulus would help cushion the blow, minutes from the country’s central bank’s last meeting showed on Tuesday.”

https://uk.reuters.com/article/uk-australia-economy-rba-minutes/australia-faces-unprecedented-economic-hit-from-coronavirus-rba-minutes-idUKKBN22V076


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Protesters and police have clashed on the outskirts of the Chilean capital Santiago amid tension over food shortages during lockdown.

“Local television showed police using tear gas and water cannon to quell unrest on the streets of El Bosque, where poverty is high.”

https://www.bbc.co.uk/news/world-latin-america-52717402


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The one-two punch of the global coronavirus pandemic and the collapse of oil prices is hollowing out the budgets of oil-producing countries, raising fears of instability in certain corners of the globe.

“Many oil-producing countries are no strangers to war, corruption and economic challenges. But a global recession coinciding with an agonizingly oversupplied oil market magnifies the danger.”

http://energyfuse.org/unrest-brewing-in-oil-producing-countries/


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Two reports out Monday [IHS Markit and Deutsche Bank Wealth Management] predict that global growth will struggle to bounce back from the lockdowns, travel restrictions and business closures meant to contain the pandemic.”

https://economictimes.indiatimes.com/news/international/business/world-economy-faces-tough-journey-back-from-crisis-reports/articleshow/75817202.cms


Risk managers expect a prolonged global recession as a result of the coronavirus pandemic, a report by the World Economic Forum showed on Tuesday.”

https://www.reuters.com/article/us-health-coronavirus-wef-report/long-lasting-global-recession-likely-due-to-covid-19-says-world-economic-forum-report-idUSKBN22V0GR


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The global economy will take much longer to recover fully from the shock caused by the new coronavirus than initially expected, the head of the International Monetary Fund said, and she stressed the danger of protectionism.”

https://economictimes.indiatimes.com/news/economy/indicators/imf-chief-kristalina-georgieva-warns-full-global-economic-recovery-unlikely-in-2021/articleshow/75813580.cms


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