G20 fiscal packages to fight the coronavirus crisis exceeds £3.82tn
Data gathered by Buyshares.co.uk indicates that the cumulative fiscal package to the coronavirus pandemic by G20 member countries is £3.82tn. The fiscal package is not final because the COVID-19 pandemic is yet to be contained fully.
Japan has the highest fiscal response to the pandemic at £812bn which is 19.5% of the country’s £4.17tn GDP.
The United States package stands at £458bn, representing 11% of the £17.3tn GDP. Australia with a GDP of 31.18tn has a fiscal response of £404.1bn.
Canada’s fiscal response is £349.94bn, representing 8.4% of the country’s £2.3tn GDP. Brazil is fifth with a fiscal response package of £270.79bn or 6.5% of the country’s GDP of £1.65bn.
Other G20 countries with notable responses to the current pandemic include Poland (£258.29bn), Germany (£204.13bn), France (£166.64bn), China (£158.31bn), and Saudi Arabia (£133.31bn) and the United Kingdom (£124.98bn). South Africa has the least fiscal response of £4.17bn which is only 0.1% of the £285.34bn GDP.
The move made by G20 countries is key in having an overall roadmap. According to the Buyshares.co.uk research report: “The rest of the world has been watching responses made by the G20 countries for guidance. With the Coronavirus pandemic, most economies have stalled since it is dangerous for people to cooperate in the same physical space as before. In this case, the world needs a new policy mechanism and G20 is among the bodies expected to come up with one.”
Buyshares.co.uk’s research also overviewed the size of fiscal packages announced by G20 countries in response to the financial and COVID-19 crisis in 2009 and 2020. Japan’s fiscal response to the financial crisis was 2.2% of the GDP compared to the Coronavirus crisis which is 19.5% of the GDP.
The United States’ fiscal package to the financial crisis and COVID-19 was 11% and 5.9% of the GDP respectively. Australia’s response to the current pandemic is 9.7% of the GDP while for the financial crisis the rate stood at 1.8%.
Elsewhere, Canada’s response to the pandemic represented 8.4% of the GDP while in 2009, such a fiscal response was 2.8% of the GDP. For Brazil, the fiscal package released to mitigate the financial crisis in 2009 represented 0.5% of the GDP compared while the COVID -19 management package represents 6.5% of the GDP.