The IMF performed mathematical calculations and concluded that the disease is more devastating in Europe than in the United States. In the context of another study, the OECD warned that Portugal may be full of zombie companies, “there is room for improvement in bankruptcy procedures.” When the recovery comes, there is still some room for tax increases.
Compared with the actual situation in the United States, the European population is far beyond the (in fact) limits required by law. According to a study released by the International Monetary Fund (IMF) yesterday, this is of course more destructive to the European economy than to North America.
Recall that in the latest forecast of the International Monetary Fund (prediction at the beginning of this month), the Eurozone accounted for Incision for rectal projectionThis year’s one-eighty percent is one of the highest. Now, the single currency area is expected to grow by 4.4%.
On the other hand, the United States has been significantly improved and is once again regarded as a powerful engine of the world economy. The IMF has raised its forecast for the United States by an impressive 3.3 percentage points, and now the world’s largest economy is said to be likely to grow by 6.4%. By the way, exceed the global pace (6%).
Yesterday, the work of three economists from the European Monetary Fund pointed out that “covid-19 has not spared any country, but the economic losses associated with the pandemic are, on average, much greater in Europe than in the United States, especially in 2020. Spring.” “.
“What explains these differences: macroeconomic policies or viruses?” asked the department led by Alfred Kammer.
The Washington-based agency stated that “the differences in macroeconomic policies seem unlikely to explain the negative bias in US economic activity so far.”
According to the economist of Portugal’s former creditors, “the voluntary confinement is indeed’de facto’ [na prática] More stringent in Europe, which is beyond the scope of “legal” restrictive measures [definidas por lei] And these explain most of the relative decline in activities”.
There is a reason for the overreaction of European people to formal and legal restrictions. According to the International Monetary Fund, this largely reflects the fact that the epidemic in Europe is (and still is) “more severe” compared to the United States. Ø Hospitalization and death rate The International Monetary Fund noted that in Europe, a certain number of new cases are “bigger.”
In addition, there is another factor that can help explain the worst performance in Europe. “It may reflect that the U.S. economy is more adaptable in the context of declining liquidity (for example, through the use of this standard for greater profit margins). Telecommuting), emphasizing the IMF.
There is one last message from the International Monetary Fund. Compared with the actual situation in the United States, “although Europe’s budget response is less than that of the United States, it is effective in maintaining household disposable income and corporate liquidity, so it is unlikely to play an important role in the breakdown of activities found”.
IMF’s dead end alarm sounds
This is a warning, and it has been rising in recent weeks. Recently, in an interview with Dinheiro Vivo, Ricardo Mourinho Félix of the European Investment Bank (EIB) requested a suspension of the execution period to maintain caution. This Wednesday, the International Monetary Fund also joined The choir. The director of the European Monetary Fund’s department warned: “We obviously must carefully consider ending the moratorium on executions.”
Alfred Kammer, the leader of the International Monetary Fund, which oversees Portugal and other European economies, emphasized that “for banks, it is very important to assess the true condition of the company” and that this change depends on the country. Where the pandemic arrived, where it is today, and where they are located. Trying to get out of the crisis.
The most indebted companies (companies and banks), such as Portugal, and companies that are no longer feasible or even zombies, will have to evaluate what they intend to do.