Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Global Policy Report

Kevin Thorpe • 4/2/2020

Global Policy Responses to COVID-19

As of April 2, 2020

COVID-19 is wreaking havoc on nearly every aspect of the global economy. It is clear now that what was originally a supply-side shock—and to a lesser extent an export demand shock for the global economy—has morphed into something far more pernicious. The unique nature of the pandemic, and the government actions to stem the trajectory of the outbreak, is severely impacting global manufacturing, production, and supply chains worldwide. As households hunker down, the demand side of the world economy is also experiencing broad-based headwinds. With each new data point, it becomes painfully clear, the global economy has entered a full-blown recession. 

As unprecedented as the crisis is, it’s being met by a wholly unprecedented global policy response. In the U.S., the Federal Reserve responded within the first weeks of March by cutting the target range to effectively 0%, and quickly escalated its financial market support throughout the month. The Fed’s balance sheet has already expanded by over $1 trillion in March alone. On the fiscal policy side, the U.S. Congress and President Trump have already responded with three pieces of legislation totaling more than $2.3T, or 11% of 2019 nominal U.S. GDP. For perspective, after the start of the Great Recession in December 2007, it took the U.S. Congress 10 months to pass the Troubled Asset Relief Program (TARP) and it took the Federal Reserve 11 months to implement quantitative easing (QE). The full fiscal stimulus pumped into the economy throughout 2008, 2009 and 2010 combined totaled about 10% of 2007 GDP.

In other parts of the world, the response has been equally timely and aggressive. In Germany, the combined €1T in direct stimulus and guarantees its government is providing amount to nearly 30% of GDP. In Asia Pacific, substantial “synchronized stimulus” on this scale has never been witnessed. Further, Japan is currently working on its third fiscal package valued at ¥60T—more than 10% of GDP—the largest individual fiscal package pursued, dwarfing the April 2009 stimulus deployed after the Lehman Crisis which totaled ¥56.8T. From Europe and the UK to countries throughout Asia and the Americas, central banks and governments have been called to action—and they are stepping up. 

>> Download the Global Policy Report to read policy responses around the world and what it all means for CRE

 

Related Insights

5-tech-facts-Web-card-Seattle
Article • Technology

GLOBAL TECH CITIES: SEATTLE

The Seattle market has been established tech market for decades. Seattle scores very high in several tech-related categories: number of graduates, job concentration, labor pool size, talent migration, et al.
Brian Cagayat • 8/16/2022
Tech Cities bay Area
Article • Technology

Global Tech Cities: Bay Area

The region surrounding the San Francisco Bay remains the epicenter of the technology industry.
Robert Sammons • 8/8/2022
occupier response (image)
Article • Economy

COVID-19: Occupier Response

The circumstances are constantly evolving, requiring nimble action on the part of companies and their leadership. Here are a few ways that office occupiers are responding to the challenges posed by the current health situation.
David Smith • 3/17/2020

Cushman & Wakefield verwendet Cookies, um den Datenverkehr zu analysieren und unseren Kunden das beste Erlebnis auf dieser Website zu bieten. Schließen Sie diesen Dialog und stimmen Sie zu oder besuchen Sie diese Seite, um mehr zu erfahren:
Cookie-Hinweis

MORE OPTIONS
Zustimmen und schließen
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS