The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva has issued a warning that the global economy would witness a synchronized slowdown in growth if they fail to resolve trade conflicts and work together.
The Details: The new IMF boss made this statement at her inaugural speech after she was appointed to replace the former IMF CEO, Christine Lagarde, who resigned to become head of the European Central Bank (ECB).
“There is a serious risk that services and consumption could soon be affected,” she said. She added that trade conflicts had weakened manufacturing and investment activities globally.
[READ MORE: IMF boss discloses immediate priority]
Georgieva noted that the cumulative effect of trade conflicts would result in a $700 billion reduction in global Gross Domestic Product (GDP) output by 2020, or around 0.8%. She hinted that new Fund research would be unveiled during IMF and World Bank annual meetings next week.
Trade Tariffs: The IMF boss’ predictions cast its lens on the United States President, Donald Trump, who planned tariff increases on remaining Chinese imports, or around $300 billion worth of goods. Georgieva warned that a huge chunk of the GDP losses would arise from a decline of business confidence, productivity losses from broken supply chains and negative market reactions.
“In 2019, we expect slower growth in nearly 90% of the world. The global economy is now in a synchronized slowdown. This means that growth this year will fall to its lowest rate since the beginning of the decade.”
She also said that this development would affect several countries suffering from trade conflicts, as well as struggling emerging markets.
Global financial crisis looms: The IMF boss added that if this trend continues, then the world would require a “synchronized policy response” along the lines of stimulus efforts enacted during the 2008-2009 financial crisis.
Georgieva urged central banks around the world to maintain low rates where appropriate but also warned that this could prompt excessive credit growth and risky investments in the search for better yields, leading to increased financial vulnerabilities.
“Our new analysis shows that if a major downturn occurs, corporate debt at risk of default would rise to $19 trillion, or nearly 40% of the total debt in eight major economies. This is above the levels seen during the financial crisis.”
President Biden directs international air travelers must quarantine upon arrival
President Joe Biden has directed international air travellers to quarantine upon arrival in the United States.
The United States President Joe Biden has issued an executive order on Thursday that makes it mandatory for international air travellers to quarantine upon arrival in the US.
Similarly, the executive order also includes a directive that all interstate travellers in the US will be expected to wear a face mask. This travel order applies to airports and planes, trains, ferries, intercity buses and public transportation, but grants them the ability to issue exemptions.
What the US President is saying in the executive order
According to a report from Reuters, President Biden’s order says, ‘‘To the extent, feasible air travellers must comply with applicable U.S. Centers for Disease Control and Prevention (CDC) guidelines concerning international travel ‘including recommended periods of self-quarantine.”
However, the executive order does not explain how it will be enforced as the implementation still remains quite hazy.
The order also directs US agencies to engage with Canada and Mexico on public health protocols for land ports of entry including implementing CDC guidelines. Almost all non-essential travel at US land borders with Canada and Mexico has been suspended till February 21.
The CDC recommends a 7-day quarantine for people arriving in the United States from nearly all countries.
Biden is directing agencies to reconsider international contact tracing requirements for U.S.-bound passengers, which was abandoned by the Trump White House, as well as the possibility of follow-up Covid-19 testing for travellers after they arrive in the United States.
In addition, the US President has also directed that all travellers including US citizens, will be required to show proof of a negative Covid-19 test before entering the country from abroad in an order that underscores the CDC policy announced last week.
What you should know
- It can be recalled that the Trump administration had resisted calls for the enforcement of a mask-wearing requirement.
- The Biden administration has also announced that it would reimpose coronavirus-related ban on most non-U.S. citizens arriving from European Union, Brazil, the United Kingdom.
- This follows the lifting of the restrictions by former US President, Donald Trump through an executive order on Monday.
Joe Biden sworn-in as the 46th President of the United States
The whole world watched in awe as Joe Biden was sworn in as the new President of the United States.
Joe Biden has been sworn in as the 46th President of the United States.
The 78-year-old Democrat and former Vice president to Barack Obama is being sworn in after emerging the winner of last year’s Presidential elections.
Biden’s running mate, Kamala Devi Harris was sworn in as vice president by Justice Sonia Sotomayor, becoming the first woman and the first black and Asian-American person elevated to serve in a role a heartbeat from the presidency.
The inauguration took place at the US Capitol, the same building that was stormed on January 6, by Donald Trump’s violent supporters.
Trump who for months refused to conceded to Biden’s victory at the polls left the White House for the final time hours earlier and flew to Florida after making it clear weeks ago that he will not be attending the inauguration.
Trump’s Vice, Mike Pence attended the ceremony, as he skipped Trump’s farewell military salute event at Andrews base.
The ceremony includes musical performances by Lady Gaga – who sang the national anthem – as well as Jennifer Lopez and Garth Brooks.
Former Presidents; Barack Obama, George W. Bush and Bill Clinton were all present at the inuaguration
What you should know
- At 78, Biden is the oldest president ever to take the oath of office.
- In his speech, Biden swore to defend the constitution and the country “against all enemies, foreign and domestic”.
- History was made as Kamala Harris became America’s first female, first Black and first Asian American vice-president.
- Donald Trump skipped the ceremony, becoming the first president not to attend his successor’s inauguration since 1869.
Joe Biden to return United States to WHO on first day as President
In-coming US President, Joe Biden has resolved to immediately return the country back to the WHO after his inauguration.
The US President-elect Joe Biden plans to immediately return back the country to the World Health Organization (WHO) on the first day after his inauguration as he intends to make a sweeping review of the policies of outgoing President, Donald Trump.
This is as he intends to send top US medical expert Anthony Fauci to speak to the group in a strong rejection of Donald Trump’s snubs and criticisms during the coronavirus pandemic.
This disclosure is contained in a fact sheet released by President-elect Joe Biden’s transition team.
According to a report by Bloomberg, the incoming administration plans to take part in the WHO executive board meeting this week, with Fauci, the top U.S. infectious disease expert, heading the delegation and speaking.
The statement says that as soon as the United States resumes its engagement with the WHO, the new administration will work with the body to strengthen and reform the UN health agency.
What this means
- With these announced plans, the Joe Biden administration is showing that it intends to set a new science-based tone in seeking to reverse Donald Trump’s dismissal of strategies to mitigate the virus as well as seek international cooperation in addressing the pandemic.
- It also further reinforces the incoming President’s earlier criticism of Trump’s handling of the pandemic especially in the early days rather than laying blames.
What you should know
- It can be recalled that President Donald Trump in May 2020, announced that the US would exit the WHO because of what he said was its undue deference to China and failure to provide accurate information about the coronavirus.
- He often referred to the UN health agency as being controlled by China and criticized their handling of the coronavirus pandemic.
- The US had been the WHO’s largest contributor, providing $400 million to $500 million in mandatory and voluntary contributions annually, with Trump’s last year decision drawing sharp criticism in Congress, as well as from allies in Europe.