Due to the coronavirus pandemic, the global economy will shrink dramatically this year: the international monetary fund (IMF) expects the worst global recession in almost a century.

Global economic output could fall by 3 percent in 2020, and by as much as 7.5 percent in the euro zone, according to the IMF’s latest global economic forecast. In january, the IMF was still forecasting global growth of 3.3 percent for 2020, with the euro zone expected to grow by 1.3 percent.

"It is a truly global crisis because no country will be spared," IMF chief economist gita gopinath told journalists. A significant increase in unemployment had to be expected.

The IMF refers to the corona crisis as "the great lockdown," in reference to the world economic crisis of the 1920s and 1930s. Gopinath said the predicted economic slump would be "the worst recession since the great depression and much worse than the global financial crisis" of 2008 to 2009.

IMF expects per capita incomes to shrink in around 170 countries this year. Global economic output is therefore likely to fall by around 9 billion US dollars (8.2 billion euros) in 2020 and 2021 because of the pandemic, gopinath said.

IMF expects significant recovery next year. The global economy is expected to grow by 5.8 percent compared to the previous year, and the 19 eurozone countries by 4.7 percent. However, the precondition for this is that the epidemic can be largely brought under control in the second half of 2020 and economic life also returns to normal, as the IMF explained.

The organization warned, however, that the forecasts are subject to "extreme uncertainty". The economic consequences depend on many factors, including the duration and intensity of the pandemic, it said. If the pandemic does not recede in the second half of the year, the global economy could slump by as much as 6 percent this year and continue to contract in 2021, gopinath said.

According to the IMF, the german economy is expected to shrink by 7 percent in 2020 compared with the previous year, while the spanish economy will contract by 8 percent and the italian economy by as much as 9.1 percent. For the U.S., the world’s largest economy, the IMF foresees a 5.9 percent contraction.

Since mid-march, some 17 million people there have already applied for unemployment benefits, suggesting a dramatic economic slump. According to the IMF, economic output in japan is expected to decline by 5.2 percent. In china, on the other hand – where the corona crisis now appears to be under control – the economy is expected to grow by at least another 1.2 percent.

The IMF called on all governments to provide targeted support to the economy to overcome the consequences of the crisis. This would include credit programs for affected companies as well as additional government funding to help affected industries, the IMF said. Targeted aid will pave the way for recovery in the coming year, it added.

However, many poorer countries do not have sufficient room for additional spending. And developing and emerging countries are now facing higher financing costs to obtain fresh money on the international credit markets.

As a result, dozens of countries have already applied to the IMF for emergency loans to strengthen their health systems and cushion the economic impact of the pandemic. The IMF also announced debt relief for 25 of the poorest countries, including afghanistan, haiti, mali, mozambique, congo and yemen.

The leading industrialized countries of the G7 group also declared on tuesday that they would suspend debt service for the poorest countries for a limited period because of the corona crisis. However, the participation of all G20 countries is a prerequisite, according to a statement by the U.S. Department of the treasury following a telephone conversation between G7 ministers and central bank heads. China, which has recently extended loans to many developing countries, had to agree to this, among other things. The IMF’s pot of emergency aid should also be increased, it added.

The federal government in berlin also signaled approval for an increase in the IMF’s CCRT disaster fund. "We will again support the initiative financially," was the message from the finance ministry on tuesday. The federal government would also stand by the IMF in the event of further decreases.

In france, finance minister bruno le maire said there was already a consensus within the G20 to grant the poorest countries a payment deferral this year. "We have achieved this in the framework of the paris club and in the framework of the G20, because china has supported our approach," said le maire.

This affects 76 countries, mainly in africa. The agreement involves some 20 billion U.S. Dollars. The paris club has 22 members, including germany. They have similar credit rules and continue to negotiate greater debt relief for sovereigns.

For the countries of africa south of the sahara, the IMF expects economic output to shrink by 1.6 percent in 2020. The worst hit economies are expected to be nigeria (down 3.4 percent) and sud africa (down 5.8 percent). Both have also been hit hard by the fall in commodity prices. Nigeria has already applied to the IMF for an emergency loan. For south america and the caribbean, the IMF projects a 5.2 percent decline this year, and for the middle east and central asia, 2.8 percent.

The latest economic forecast was presented at the spring meeting of the IMF and the world bank. Due to the corona virus, the meeting, to which ministers, bankers and experts from all over the world usually travel to washington, is only taking place virtually.

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Ride-hailing services uber and lyft have won a last-minute reprieve from a california law that requires drivers to be treated as employees rather than independent contractors.

Lyft had already announced that it would suspend operations in the u.S. State at midnight because the new regulations would then take effect. Uber also had a stop in sight.

But a court of appeal tied the deferment to conditions. First, uber and lyft must agree to an expedited appeals process. Then the company bosses had to wait until the 4th place. September personally assure that there are plans to implement the law within 30 days. These plans are to be used if the court rejects the appeal – or an exemption sought by the companies falls through with california voters. An oral hearing in the appeal was scheduled for 13. October set.

Things got tight for uber and lyft after a judge ruled that drivers active on such platforms must be treated as employees in the state under a 2019 law. The temporary restraining order was to take effect on friday. At the same time, the companies are hoping that in november "proposition 22", which contains an exemption from the law for driving service intermediaries and which they massively support, will be adopted.

Lyft and uber’s business has recently been massively impacted by the corona crisis. For lyft in particular, california is a very important market: for its smaller uber rival, 16 percent of all rides take place there.

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Lufthansa tightens savings course for fleet and personnel State-trimmed lufthansa must shrink even more than initially planned in the corona crisis. Due to weak demand and ongoing travel restrictions, at least…

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State-trimmed lufthansa must shrink even more than initially planned in the corona crisis.

Due to weak demand and ongoing travel restrictions, at least 150 aircraft in the group’s fleet will be permanently grounded and thousands of additional jobs will be eliminated, the company announced in frankfurt on monday. The mdax group also wants to cut every fifth management position and rent 30 percent less office space in germany.

Until now, lufthansa had planned to reduce the group’s fleet by 100 aircraft in the medium term, which once numbered 760 or, including leased-in aircraft, 800 jets. The number of full-time positions to be cut will also exceed the 22,000 announced so far, the executive board said, without giving an exact figure. Insiders assume that up to 5,000 additional jobs will be eliminated.

It also remained unclear how many of the currently still approximately 128.000 airline employees fear redundancy. Since the beginning of the year, around 10,000 new jobs have been created abroad.000 people leave the airline. Talks about reconciliation of interests and social plans are underway for the german workforce. The management board referred to its goal of creative part-time models and ongoing negotiations with the employees. The company is continuing to work with its collective bargaining partners on appropriate crisis packages to minimize the number of redundancies.

Only massive state aid from the four home countries – germany, austria, switzerland and belgium – totaling nine billion euros prevented the collapse of the highly indebted company. Nevertheless, lufthansa is currently losing 500 million euros in cash every month in the corona slump. This figure is expected to fall to 400 million euros by the winter as savings are made, and to turn positive in the course of the coming year. Lufthansa intends to use the proceeds from partial sales to repay the state’s shareholding.

So far, lufthansa has only concluded a long-term agreement with the ufo cabin crew union. Verdi, which is fighting for ground staff, on monday adopted the criticism of the pilots’ union "vereinigung cockpit" of the management plans for the new "ocean" tourism platform, for which 300 new jobs at a lower wage level than at the parent company have initially been advertised.

Verdi negotiator mira neumaier demanded forward-looking concepts. "Cutting jobs alone will not save the company."The employees of lufthansa technik also had well-founded fears for their future. "Lufthansa as an airline needs a strong lufthansa technical division with its well-trained specialists and collective bargaining structures," neumaier explained, referring to a possible spin-off of the technical division. The sale of the catering subsidiary LSG sky chefs, which had already been initiated, is to be completed this month for europe, according to the group’s management.

This year, after the "flash in the pan" of the summer travel season, lufthansa only expects to offer flights between 20 and 30 percent of pre-crisis levels. Originally lufthansa wanted to fly half of its pre-corona program again by the end of the year. For a quick recovery, management sees the extension of corona rapid tests to the airport as a prerequisite to avoid long quarantine periods.

Due to the low level of intercontinental traffic, lufthansa is now mothballing its large A380 aircraft for the long term, unless they can be returned to the manufacturer airbus. Ten more A340-600 intercontinental jets are also to remain permanently parked. "These aircraft could only be reactivated in the event of an unexpectedly rapid market recovery," the board announced. Seven more A340-600s to be taken out of service immediately. Fleet decisions led to impairment losses of up to 1.1 billion euros in the current quarter.

The corona crisis hit europe’s biggest airline hard, as it did the entire industry in the spring. Global air traffic has come to a virtual standstill in the meantime, and intercontinental traffic has so far only returned to a very small extent. Currently, the group brands lufthansa, eurowings, swiss, austrian and brussels are suffering from the complex entry restrictions imposed by the national states. Only freight still brings money into the coffers.

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The majority of germans are against a relaxation of the contact ban to contain the corona pandemic. In a poll conducted by the opinion research institute yougov on behalf of the german press agency, 44 percent favored an extension of the restrictions over the 19. April, 12 percent are even in favor of tightening the restrictions.

Only 32 percent are in favor of relaxing and 8 percent of abolishing the restrictions imposed by the federal and state governments. 5 percent did not give any information.

78 percent fully comply with restrictions

On wednesday, german chancellor angela merkel (CDU) met with the prime ministers of the federal states to discuss how to achieve a sustainable future after the 19. April wants to proceed. The round had on 22. March decided to impose comprehensive restrictions on freedom of movement for two weeks, and later to extend them over easter until 19 march. April verlangert. Even before that, sporting and cultural events with spectators had been banned and most businesses – with the exception of the food trade in particular – had been closed.

Acceptance of the restrictions remains rough: 78 percent say they comply fully, 18 percent only partially and 2 percent not at all. Thus, the discipline is only slightly less than at the beginning of the contact ban at the end of march. At the time, 83 percent said they fully comply with the adopted rules, 12 percent partially and 2 percent ignored the restrictions even then.

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In a fire in a hospital for corona patients in st. Petersburg five people have died this tuesday. According to the interfax agency, these were patients who were connected to ventilators in the intensive care unit.

150 patients and employees were brought to safety on other floors of the clinic. The fire broke out on the sixth floor.

Investigators believe that one of the ventilators caught fire in the morning hours for reasons that are still unclear. According to the state agency tass, the victims are four men and one woman aged 59 to 67. Police want to know if all five patients died from toxic gases. They were seriously ill, it was said.

In a video, smoke could be seen rising from a window. Firefighters extinguished the fire. The hospital was reportedly re-equipped for the treatment of people with the coronavirus only in the middle of march. In russia, many clinics for corona patients have been rerouted in recent weeks.

It was only on monday night that eleven people died in a fire at a hospice in the city of krasnogorsk, west of moscow. Nine seniors died in the fire, and two others succumbed to their injuries at a hospital, authorities said tuesday. Many residents were saved.

The head of the hospice has been charged with violating safety regulations, it was reported. A short circuit is suspected as the cause. According to information from interfax, the hospice was not equipped with a fire alarm. Moreover, there were no escape routes for handicapped people. In russia, serious fires with high casualty figures occur time and again due to violations of safety regulations.

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