Lupa Kata Sandi? Klik di Sini

atau Masuk melalui

Belum Memiliki Akun Daftar di Sini


atau Daftar melalui

Sudah Memiliki Akun Masuk di Sini

Konfirmasi Email

Kami telah mengirimkan link aktivasi melalui email ke rudihamdani@gmail.com.

Klik link aktivasi dan dapatkan akses membaca 2 artikel gratis non Laput di koran dan Majalah Tempo

Jika Anda tidak menerima email,
Kirimkan Lagi Sekarang

Pandemic Could Trigger Social Unrest in Some Countries: IMF

Translator

Tempo.co

Editor

Laila Afifa

15 April 2020 22:58 WIB

TEMPO.COWashington - New waves of social unrest could erupt in some countries if government measures to mitigate the coronavirus pandemic are seen as insufficient or unfairly favoring the wealthy, the IMF said in a new report on Wednesday, April 15.

Governments had already spent nearly $8 trillion to combat the pandemic and mitigate the economic fallout, but more fiscal stimulus would be needed once the crisis abated, the global lender said in its semi-annual Fiscal Monitor.

The spike in spending would sharply widen fiscal deficits, with global public debt set to rise 13 percentage points to more than 96% of gross domestic product in 2020, it said.

On Tuesday, the IMF forecast the global economy to shrink 3.0% during 2020 as a result of the pandemic, but warned that its forecasts were marked by “extreme uncertainty” and outcomes could be far worse.

Efforts to halt the disease have shut down large swaths of the global economy, with emerging market and developing countries likely to be hardest hit.

While mass protests are unlikely with strict lockdowns in place, unrest could spike when the crisis appeared to be under control, Vitor Gaspar, director of the IMF’s fiscal affairs department, told Reuters in an interview.

To avert further unrest following numerous protests in many parts of the world over the past year, policymakers must communicate with affected communities to build support for measures to tackle the virus, he said.

“This is something we have emphasized: it is crucial to provide support to households and firms that are made vulnerable by the crisis,” he said. “The goal is to support and protect people and firms that have been affected by shutdowns.” 

Tensions are already becoming evident as lockdowns leave day laborers and many in the informal economy without jobs or food.

In India’s commercial capital of Mumbai, thousands of jobless migrant workers protested on Tuesday at a railway station, demanding to be allowed to return to their homes in the countryside, after Prime Minister Narendra Modi extended a lockdown of the population of 1.3 billion.

Unemployment has almost doubled to around 14.5% in India since the lockdown began in late March, according to the Centre for Monitoring Indian Economy, a private think-tank.

In India and elsewhere, shutdowns have sparked an exodus of millions of workers from city jobs in small industries and service jobs back to their home villages.

Daily wage earners are particularly vulnerable, and many are already having to skip meals, say World Bank officials.

IMF chief economist Gita Gopinath said previous crises and disasters had fostered solidarity, but there could be a different outcome this time.

“If the crisis is badly managed and it’s viewed as having been insufficient to help people, you could end up with social unrest,” she told Reuters.

To avoid future protests, she said it was critical for the international community to play a supportive role for poorer countries through concessional financing and debt relief.

The report said government spending to date included direct fiscal costs of $3.3 trillion, public sector loans and equity injections of $1.8 trillion, plus $2.7 billion in guarantees and other contingent liabilities of $2.7 trillion.

It forecast lower output and said government revenue was now forecast to be 2.5% of global GDP, lower than was projected in October.

Gaspar said it was hard to predict how much more spending would be needed, but broad-based fiscal stimulus would be an important tool to foster recovery once the outbreak abated.

REUTERS



Vietnam Economy Expands by 5.66% in Q1 as Exports Boom

1 jam lalu

Vietnam Economy Expands by 5.66% in Q1 as Exports Boom

Vietnam's gross domestic product in the first quarter grew 5.66% from a year earlier as exports boomed, government data released on Friday.


Sri Mulyani Remains Upbeat Indonesia's Economy to Grow 5.2 Percent in 2024

9 hari lalu

Sri Mulyani Remains Upbeat Indonesia's Economy to Grow 5.2 Percent in 2024

Indonesian Finance Minister Sri Mulyani Indrawati expresses optimism that the country's economic growth will reach 5.2 percent in 2024.


Jakarta has Capital to Become Business City Competing with New York: Economist

11 hari lalu

Jakarta has Capital to Become Business City Competing with New York: Economist

The metropolitan city of Jakarta has the capital to become a business and economic hub that can compete with New York, an economist says.


Indonesia's Aviation Sector to Recover 100% in 2024 Post COVID-19 Pandemic

21 hari lalu

Indonesia's Aviation Sector to Recover 100% in 2024 Post COVID-19 Pandemic

The recovery in the aviation sector post-COVID-19 pandemic has reached 83 percent.


Bank Indonesia: Single Round Election May Help Economy Grow More than 5.1%

23 hari lalu

Bank Indonesia: Single Round Election May Help Economy Grow More than 5.1%

Bank Indonesia (BI) Governor Perry Warjiyo is confident that Indonesia's economic growth will exceed 5.1 percent in 2024.


Today's Top 3 News: Indonesian National in Japan Arrested Over Alleged Child Abandonment

28 hari lalu

Today's Top 3 News: Indonesian National in Japan Arrested Over Alleged Child Abandonment

Here is the list of the top 3 news on Tempo English today.


Finance Minister Sri Mulyani Likens Indonesia's Economy to Brazil Ahead of G20 Meeting

29 hari lalu

Finance Minister Sri Mulyani Likens Indonesia's Economy to Brazil Ahead of G20 Meeting

Sri Mulyani Indrawati said economic similarities are present between Indonesia and Brazil.


Jokowi Claims Indonesia's Economy Sturdy Amidst Global Uncertainties

30 hari lalu

Jokowi Claims Indonesia's Economy Sturdy Amidst Global Uncertainties

Jokowi explains that Indonesia's economy in 2023 grew 5.05 percent, with controlled inflation at 2.57 percent.


AHY Visits Airlangga's Office; Promises Smooth Land Acquisition Process for Investments

31 hari lalu

AHY Visits Airlangga's Office; Promises Smooth Land Acquisition Process for Investments

AHY is committed to ensuring successful investment and infrastructure development in fields that require land readiness and legal certainty.


How India's COVID Lockdowns Impacted Menstrual Health

34 hari lalu

How India's COVID Lockdowns Impacted Menstrual Health

Limited access to period products during India's COVID lockdown highlighted how far public health initiatives have to go when it comes to menstruation