Space Industry and Business News  
TRADE WARS
IMF warns China virus hitting a fragile global economy
By Heather SCOTT
Washington (AFP) Feb 19, 2020

In the best-case scenario, the economic hit from the epidemic in China will be short-lived, but it comes as the global economy remains fragile, IMF chief Kristalina Georgieva said Wednesday.

Beset by many other risks, including the paused but still-unresolved US-China trade war, the world is not in a good position to deal with a prolonged impact, she wrote in a blog post.

"The truth is that uncertainty is becoming the new normal," she said.

The coronavirus "is our most pressing uncertainty... It is a stark reminder of how a fragile recovery could be threatened by unforeseen events."

The virus to date has left nearly 1,900 dead and sickened 72,000 in China, cutting off transportation and forcing many businesses to close their doors.

Apple, which relies on Chinese production, warned this week that iPhone supplies will be constrained.

Georgieva repeated the fund's view that the new coronavirus is likely to have only a short-term effect, marked by a sharp decline in China's GDP followed by a sharp recovery.

But she warned that the situation could worsen, with more dire consequences for other countries as the impacts spill over.

"A long-lasting and more severe outbreak would result in a sharper and more protracted growth slowdown in China," she wrote.

- Amplified impact to global growth -

"Its global impact would be amplified through more substantial supply chain disruptions and a more persistent drop in investor confidence, especially if the epidemic spreads beyond China."

The International Monetary Fund on Wednesday again warned that risks to the global economy "remain skewed to the downside," in its customary report for the Group of 20 finance ministers and central bank governors who will be meeting in Saudi Arabia over the weekend.

The Washington-based crisis lender in January downgraded its forecast for global growth this year to 3.3 percent, despite relief over the truce in the US-China trade conflict that led to tariffs on billions of dollars in goods.

The "phase one" US-China deal prevented even more tariffs from taking effect and the IMF estimates it "will reduce the drag from trade tensions on the level of GDP in 2020 by 0.2 percent."

However, it "only addresses a small share of the recently imposed tariffs and specifies minimum increases in China's imports from the United States," the IMF chief said.

In addition, the deal relies on "managed trade arrangements" -- with specific targets for China to purchase from the United States -- which "have the potential to distort trade and investment while harming global growth."

"In fact, our estimates suggest that the managed trade provisions cost the global economy close to $100 billion dollars," she said.

The G20 Surveillance Note, as the report is known, said the recovery in the member economies is "fragile and likely to be shallow," too low to raise living standards or provide sufficient jobs for young people entering the workforce.

"Even in the best-case scenarios, however, the projected rate of global growth is still modest in too many parts of the world," Georgieva said.


Related Links
Global Trade News


Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor
$5 Billed Once


credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly


paypal only


TRADE WARS
HSBC axes 35,000 jobs as profits slump
London (AFP) Feb 18, 2020
Asia-focused banking giant HSBC on Tuesday axed 35,000 jobs, far more than expected, and posted slumping annual profits, as it warned over the financial impact of the deadly coronavirus. Pre-tax profits tumbled by a third to $13.3 billion (12.3 billion euros) in 2019 from a year earlier, largely owing to a $7.3-billion write-off related to its investment and commercial banking businesses in Europe. The London-based lender added in a results statement that it hopes to cut its global workforce by ... read more

Comment using your Disqus, Facebook, Google or Twitter login.



Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

TRADE WARS
Cracks actually protect historical paintings against environmental fluctuation

Going viral: Demand for disease-themed movies and games explodes

Researchers develop smaller, lighter radiation shielding

Army researchers develop new method for analyzing metal

TRADE WARS
US Army and Air Force team up for multi-domain operations

Lockheed Martin's Most Advanced Mobile Communications Satellite Launches

Space and Missile Systems Center awards Northrop Grumman $253.6 million for Protected Tactical SATCOM acquisition

AEHF-5 Satellite Control Authority Transferred to Space Operations Command

TRADE WARS
TRADE WARS
Third Lockheed Martin-Built GPS III satellite delivered to Cape Canaveral

Honeywell nets $3B+ deal for new Air Force navigation system sustainment

Google Maps marks 15-year milestone with new features

Space Force decommissions 26-year-old GPS satellite to make way for GPS 3 constellation

TRADE WARS
Japan firm lands massive Sri Lanka airport contract

Qantas cuts flights to Asia as coronavirus hits profits

Asia-Pacific airlines could lose $27.8 bn to coronavirus: IATA

Fighter planes go to Tyndall AFB for live-fire exercises

TRADE WARS
New Argonne etching technique could advance the way semiconductor devices are made

Artificial atoms create stable qubits for quantum computing

Rare-earth element material could produce world's smallest transistors

DNA-like material could bring even smaller transistors

TRADE WARS
Utilis partners with SITE Technologies to provide next-generation total property assessment

Saudi Arabia shivers in worst cold spell since 2016

Space key to wetland conservation

ECOSTRESS mission sees plants 'waking up' from space

TRADE WARS
Smog veils Central Asia cities as smoky stoves choke locals

Air pollution costs $2.9 trillion a year: NGO

Global cost of air pollution $2.9 trillion a year: NGO report

Draft US law seeks to make plastic industry responsible for waste









The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.