Independent journal on economy and transport policy
21:00 GMT+2
CENTRO INTERNAZIONALE STUDI CONTAINERS
ANNO XXXVIII - Numero LUGLIO 2020
GLOBAL ECONOMY
EU FUND 'INSUFFICIENT' AS COVID-19 CAUSES RECORD PEACETIME
ECONOMIC DECLINE
"The COVID-19 pandemic will cost the global economy the
equivalent of the combined GDP of Germany, France, Italy and
Spain, according to a report released by Valenciaport and the
Institute of International Economy (IIE)."
In a statement, Valenciaport and the IIE said economic activity
will fall by approximately $12 billion, which would be the biggest
drop in peacetime, and that it will require a collaborative strategy
from governments to recover.
Additionally, it said the recovery $865 billion (€750
billion) fund recently unveiled by the EU was must be the "first
step towards a sustained and sustainable long-term recovery
project".
Vincente Pallardo, analyst at the IIE, described the recovery
fund as "insufficient" if Europe was to recover from the
COVID-19 pandemic in the long term.
"It is a first step, the next one has to be included in the
community budget for the next seven years", Pallardo explained,
in a presentation with Aurelio Martinez, president of the Port
Authority of Valencia.
"This is the biggest drop in economic activity in times of
peace. We are facing the greatest fiscal and monetary expansion in
history," said Pallardó.
Valenciaport for its part forecasts an overall decrease in
traffic in 2020 of 10% and expects a normalisation in the movement
of goods in the second half of the 2020.
However, the first days of July show an improvement in the
export traffic managed by Valenciaport, which marks a slight
recovery in activity.
"In the month of July we began to see a slight improvement
in the traffic of goods, especially in exports," Martinez said.
"If the figures continue in this line in the coming months,
the second half of the year will have some standardized traffic.
"The greatest impact has been in the toughest months of the
Covid, (April, May and June) so that traffic estimates for
Valenciaport this year may be a drop of around 10%."
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