While the International Monetary Fund is calling for coordinated global action, there’s no clear picture on what that might entail. That puts the onus on governments for the time being, including Chinese authorities already squeezed by a trade war with the U.S.
China said Sunday it will enact more-efficient stimulus measures despite a widening fiscal gap, including lower corporate taxes. Hong Kong’s top finance official said the city is facing “tsunami-like” shocks that may lead to a record budget deficit. Singapore is headed for its biggest budget gap in almost two decades, according to analysts.
“While large-scale rolling back of taxes and fees may increase short-term challenges, the nation must take a longer-term view and take resolute steps to implement tax and fee cuts,” Chinese Finance Minister
The party’s Politburo has already urged China to meet its economic targets this year, signaling the potential of a large-scale stimulus as
With the virus
While the People’s Bank of China has provided liquidity and central banks in the Philippines, Thailand and Malaysia have cut interest rates, most major central banks haven’t signaled any easing plans.
Federal Reserve Chairman
In Hong Kong, the economic impact of the virus is worsening a recession rooted in the city’s political crisis that triggered pro-democracy protests last year.
The virus impact goes beyond retail, food and beverage and tourism-related industries, and shocks may cause unemployment to “deteriorate rapidly,” Financial Secretary Paul Chan said in a blog post Sunday.
Singapore’s fiscal gap may widen to 1.5% of gross domestic product in the year beginning April 1, the highest since 2001, according to the median estimate in a Bloomberg survey of economists.
The city state, which is losing as many as 20,000 tourists a day to travel curbs, will get a “strong” package of budget measures this week, Minister
With the number of coronavirus cases in China nearing 70,000 over the weekend and deaths rising to more than 1,660, the outbreak was a topic at an international security conference in Germany.
China has “a lot of fiscal space,” IMF Managing Director
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