The financial markets continue to be affected by the coronavirus. The outbreak is far from over in China, with thousands of people still infected, and thousands dead. According to the latest information by the World Health organization, the Covid-19 virus is 20 times deadlier than the regular flu. The Chinese government is still trying to keep the population as isolated as possible to prevent the spread of the disease, notably by stopping public transport between many cities and provinces.
Besides the developments in China, Singapore has spoken up about the negative effects of the epidemic on its economy. The city-state is quite densely populated and currently has the most registered cases of patients with the Covid-19 virus after China, at 77. But besides the direct effects of the virus on the population of Singapore, the city-state is known to do a lot of business with China. Thus, the Singaporean economy is suffering due to the low activity in China over the past month, as well as the overall slump in tourism in the whole region.
The government of Singapore today revealed a comprehensive set of stimulus measures to support the economy through this trying period. In fact, the government’s plan is to take the country into an almost 11 billion Singaporean dollars’ worth of budgetary deficit in order to protect the economy from damage.
South Korea is also considering using more stimulus packages. The country is a major tech hub in the region, producing electronics and cars, but many of the parts necessary for this process come from China. Moreover, a high percentage of the goods made in South Korea are exported to China. Japan, which is in a similar position, has already exhibited signs of an economic recession, while South Korean officials have hinted that this could also happen to their country unless actions to prevent it are taken.
European countries today also agreed to open up to more financial stimulus in the coming months, according to official statements by several key finance ministers from EU countries such as France and Germany.
