The World Must Go On Even Without Trump

The US President has been blocking an important body of the World Trade Organization for months. The European Union is now presenting a new association. That should impress Washington for one reason in particular.

Under President Donald Trump, the United States has strongly been away from the world. He showed this most recently in the current corona crisis, in which Trump speaks disparagingly of the crisis reaction of Europeans despite the desperate situation in his own country and even calls the coronavirus the China virus. While Brussels was only astonished at the beginning of Trump’s tenure in view of the new tones from Washington, the stiffness in the shock has now given way to a grim determination.

Europe has no choice but to work on a new world order in the age of Trump – and the latest result is now presented by EU Trade Commissioner Phil Hogan. His employees have been working for months to keep the global trade order alive despite Trump’s attacks: not only that the US imposes punitive tariffs on key trading partners and thus destroys wealth worldwide.

The US government is also working to ensure that trading partners within the WTO can no longer defend themselves against punitive tariffs . To do this, they block the dispute settlement within the Geneva organization that has been working successfully for almost a quarter of a century.

Asia Is Facing Economic Shock Due To Corona Pandemic

The economic shock of the coronavirus is forcing China and Hong Kong to move forward, as it threatens to push Japan into recession. Private lending institutions have also extended loans from $100 and $35,000 for any reason in minutes however provided only to those whose businesses were impacted by the current pandemic.

Southeast Asia faces economic turmoil due to COVID-19

In China, more than 70,000 people have been infected with the coronavirus since Monday. According to the National Health Commission, 1,770 people have now died from the virus, 105 more than the previous count (data were taken as of February).

Less than two months after the outbreak of the virus, the economic damage in Asia is also increasing day by day. The International Currency Fund (IMF) calls for international action, but it remains unclear what it should look like. At the end of this week, G20 finance ministers will meet in Saudi Riyadh.

China

Beijing reported on Monday that it is dampening the economic shock of the coronavirus by further boosting the economy and also providing temporary corporate tax cuts. Those measures will increase the budget deficit.

The central bank previously pumped cash into the financial system, lowered interest rates to its lowest level in three years, and allowed local governments to contract $ 111 billion in debt. The Communist Party’s politburo wants China to achieve its economic goals, suggesting that the stimulus is still to come.

Japan

In Japan, it is feared that the coronavirus is pushing the economy into recession. The economy shrank by 1.6 percent in the last three months of last year, as Monday showed, as families tended to tighten after a VAT hike much harder than expected.

Because of that tax increase, companies reduced investments by 14 percent. The coronavirus threatens to shrink Japan again in the first quarter of 2020, representing a recession.

Singapore

The Ministry of Trade and Industry cut its estimate for economic growth by one percentage point this year. It was previously at 0.5 to 2.5 percent growth. That is now a contraction of 0.5 percent to 1.5 percent growth. Analysts say Singapore is on track to record its biggest budget deficit in 20 years.

Hong-Kong

In Hong Kong, a government chief said this weekend that a ‘tsunami-like’ economic shock is coming that could cause unemployment to rise rapidly and push the budget record to a record high.

Thailand

The Thai government cut its prospects sharply. While she previously expected 2.7 to 3.7 percent growth this year, it is now 1.5 to 2.5 percent. Interest has been reduced there.

Malaysia and the Philippines

The central bank has cut interest rates in both countries. Asian governments have pushed hard to immobilize the people so as to control the spread of the virus. But the lockdown threatens the people’s basic needs. The authorities have promised monetary help and have asked financial institutions to consider flexing their payment schedules for various loan repayments.