Gita Gopinath

---

The global demand for Oil fell sharply as a result of the coronavirus

gone, The World has experienced a sharp deterioration in the economic performance, because of the continuing coronavirus pandemic ends.

developing countries, to be sure, hit hard by what will warn The International monetary Fund and others.

Almost every country on The Planet is affected. The IMF expects that 170 Nations - Rich and Poor - are experiencing a decline in economic activity per person in that year. This means that the decline in average living standards.

the development of economies prices

meet in a distinctive way by the pandemic:

commodity Many are consumed exporters of raw materials of the industry. The closure of many factories around The World means there is less demand for these commodities so that their prices have fallen, significantly in some cases.

Oil is the strongest example. The Loss of the demand was especially severe, as The Crisis led to a massive decline in the demand for fuels for transport, More Than 90% from Oil .

Copper prices have also significantly

fallen, The Situation was exacerbated for a time, what was in fact a price-war between the two largest exporters, Russia and Saudi Arabia . It was an extraordinary situation.

It is not a General feature of the Oil market, but it does highlight the great imbalance between supply and demand.

Other commodities have also seen sharp price falls, although not usually on the scale of Oil . Copper , for example, is now around 18% cheaper than it was in the middle of January, and zinc, The Price is More Than 20% lower.

These price drops, beat, corporate, and tax revenues in the countries of export of these goods.

International investment

to fight the developing countries have with international investors from pulling money. The IMF's chief economist Gita Gopinath says the appetite for risk waned among international investors.

that means That you are more likely to sell inclined to, investments seen as relatively risky, including bonds and equities in emerging Markets , and to get the money Back To the what they safer bets such as the USA, Europe or Japan. She says the result was "unprecedented reversal of capital flows".

The South African rand is one of many currencies in the developing countries, the value of

Set to Fall In a blog published by the Brussels think thank Bruegel, Marek Dabrowski and Marta Domínguez-Jiménez.

they show how the difference between the yields, which is a measure for the cost of credit in the financial Markets in the United States and in developing countries expanded, in many cases. This is often A Sign that investors believe there is an increased risk that the borrowers, including governments defaulting on their debts.

Another sign of this is the increased cost for the first insurance against a default (that is, The Price of financial instruments called credit default swaps).

And Then there were sharp declines in currency values, which for many countries. This is a further sign of investors your money out of wanted to.

Foreign Debt

also another Problem - Foreign raises Debt . A decline in the value of the national currency makes it more expensive in the repayment of, or payment of interest on the Debt in other currencies.

In a time when the developing countries are public finances Under Pressure , which could deal with the health crisis and its economic consequences, Debt payments have a serious diversion of scarce resources.

So There is a vigorous campaign to address the developing countries ' Debt problems.

The IMF and The World 's leading economies have taken several measures to simplify these operations, by the discharge of The Burden of the Debt , interest payments and principal repayments over The Next couple of months.

The IMF, to cover the payments from 25 countries, mainly in Africa, in The Next six months from a Trust Fund financed by donations from member States, including a recent pledge of $185 m (£150m) from the UK. In effect, these payments were cancelled.

to move The leading economic Nations, the G20 agreed to not cancel - debts-payments of may to The End of the year for a larger group of the poorest countries. This decision covers the Debt , the payments on the G20 governments made a total of 77 countries.

It means that cash can be redirected in The Coming months to deal with The Crisis , rather than the making of these payments. But it means that you need to make the payments in The Future .

think So fighters for developing country Debt relief, the g-20 and others should Go Further .

The Jubilee Debt Campaign, for example, described the G20 move as a first step, but for the payment obligations are removed.

they also point out that the G20 deal did not address payments to the Private Sector lenders. The G20 only encouraged to provide those creditors with similar payment deferral for the poorest countries.

The Jubilee Debt Campaign wants the Rich countries, in order to prevent changes to The Law to that of private creditors, before the court to complain to Poor countries that miss payments. It is particularly important to New York , and the United Kingdom, whose laws most of the Debt of the developing countries contracts rules.

moonlighting

dealing with the health issues, in particular problems in densely populated urban areas in developing countries. Social distance is particularly difficult in this context.

Street vendors have had to balance health concerns on their economic

So is the stay At Home for people who work in the so-called informal economy. Many have to work and feed their families.

Oksana Abbouda runs StreetNet International, an organization that represents Street vendors in The World . You recently spoke to The Bbc 's Business Daily radio program.

"We have this terrible choice, either to us, in danger of [infection] and continue our informal job, or our families in danger because they are starving," she says. "This is the reality for billions of people around The World ... the informal normal in developing countries. "

Transfers

developing countries also could be affected by a decrease in the money that migrant workers send to their families back home. These transfers, as they are known, are often sent from the Rich to the poorer countries, and you can live a very important support to A Family standard.

world trade

warns More from the

A new report by the World Bank that they are likely to fall by as much as 20% this year due to the pandemic. Migrant workers, The Bank says, as a rule, are particularly vulnerable to The Loss of jobs and income.

He adds that remittances enable people to eat better, more spending On Education and reduce Child Labour .

coronavirus pandemic, global economy, global trade

Source of news: bbc.com