The IMF allocates 550000 million finance global coronavirus recovery: it is the largest injection of resources in its history and 42% of the funds will go to developing economies.
The International Monetary Fund (IMF) has just approved the largest distribution of special drawing rights in history with the goal of helping countries cope with the consequences of the coronavirus and encourage less uneven economic recovery and debt reduction generated during the last months of the crisis, especially in emerging and developing countries, which have had fewer resources to fight the pandemic.
Thus, the managing director of the IMF, Kristalina Georgieva, has announced the allocation of 650,000 million dollars (some 547.000 million euros) in reserve assets to distribute them among its 190 member countries, in function of the size of their economies, according to the Financial Times, which requires that a 42% of those funds, which is equivalent to 275,000 million dollars (about 230.000 million euros), will be allocated to developing and emerging economies.
IMF allocates 550000 million finance global coronavirus recovery
"This is a historic decision: the largest allocation of special drawing rights in the history of the IMF and an injection of energy into the global economy at a time of unprecedented crisis," Georgieva said, noting that this allocation of resources will benefit all member countries and address the global need for long-term reserves, as well as building confidence and building resilience and stability in the global economy.
The managing director of the IMF has stressed that this distribution of resources will particularly help the countries most vulnerable to the impact of the coronavirus crisis, after the Fund has cut 4 tenths of its growth forecasts for emerging and developing economies by 2021 due to limited access to vaccines for these countries and the emergence of new variants.
IMF allocates 550000 million finance global coronavirus recovery
The fundamental difference between a common IMF loan and SDRs is that SDRs are delivered to the beneficiary country without additional conditions and without obligation to repay the funds received. Kristalina Georgieva defended this measure by pointing out that developing countries were already in a compromised financial situation before the pandemic and had to spend all their reserves to respond to the pandemic crisis.
In addition, the managing director of the IMF has stressed that they continue to work with the richest countries to voluntarily give up their drawing rights and hand them over to the most vulnerable economies in order to generate a less unequal and more sustainable recovery. In fact, Italy, France, Japan and the United Kingdom have already donated part of their rights to the poverty reduction and growth fund that the IMF created to provide emergency aid to developing countries.
IMF allocates 550000 million finance global coronavirus recovery
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Unemployment registered in July its largest monthly reduction in history and Social Security has the largest number of members since February 2020
The summer season is generating the best employment figures in Spain since the onset of the coronavirus. Thus, following consecutive records of unemployment reductions recorded in May and June and after the Labour Force Survey confirmed the recovery of one million jobs since the start of the pandemic, in July the best monthly unemployment reduction figures have been exceeded since records.
Thus, unemployment registered in the offices of the State Public Employment Service (SEPE) fell by 197,841 people last month compared to June, which is 5.47% less and the largest drop in any month of the historical series. Meanwhile, in seasonally adjusted terms, registered unemployment falls at 191,756 people and, in the accumulated of the last 5 months, there are 592,000 unemployed fewer in the records of the SEPE.
July is the third consecutive record decline in unemployment, as shown in the graph above and places the total unemployed at 3.4 million workers, its lowest figure since February 2020, when it registered 3.2 million unemployed. The fall in unemployment in July has been widespread in all economic sectors and all autonomous communities, as well as in all age groups.
However, unemployment in the services sector stands out, with 133,600 unemployed fewer, while in the previous unemployed group it fell by almost 32,000 people, 13,000 in industry, 10,000 in construction and 8,800 in agriculture. In fact, the Ministry of Labor highlights in its press release presenting data on registered unemployment in July that the unemployment registered in the industrial sector is lower than at the beginning of the pandemic.
By gender, the female unemployment achieves a higher reduction than the male, with 104.800 unemployed less in front of 92.900 men in the same situation, in that age, unemployment among those under 25 years falls in 36.900 workers and in nearly 104,000 people between that exceed that age, although in relative terms, the decline in unemployment youth reaches 12.3% monthly, compared with 4.8% retracement between the above 25 years.
As for the territorial distribution, Andalusia has the greatest reduction in unemployment in July, with 69,100 unemployed less, almost double the fall in unemployment in the second community with the greatest decline, Catalonia, with 37,500 unemployed less. In addition, as the graph below shows, Galicia, Extremadura, Asturias, Castilla-La Mancha, the Balearic Islands, Melilla and Cantabria already have less unemployment than the start of the pandemic, while Madrid is still the community where it has increased the most.
In terms of Social Security affiliation, it added 133,049 contributors in July in seasonally adjusted terms, to a total of 19.4 million members, also reaching its highest record since February 2020. Meanwhile, in average figures, membership increased by 91,400 employees more than in June, accumulating a total of 19.59 million contributors on average during the month.
Similar to registered unemployment, membership has increased in almost all sectors of activity, especially in the service sector, with 130,000 more employed, while industry totaled 5,000 active workers and construction 4,500. On the other hand, agriculture was the only sector to see Social Security coverage decline in July, with 4,200 fewer employees.
By territories, in July the affiliation has increased with respect to June in 11 autonomous communities, led by the Balearic Islands, with 4.4% more occupied, while in other 6 autonomies the occupation has fallen, especially in the Canary Islands, with 0.7% less. However, compared to July 2020, membership has grown in all regions, with the Balearic Islands, Murcia, Valencia and Andalusia registering increases of between 5% and 7.5% year-on-year.
By regimes, the general has added 87,000 workers compared to June, a 0.5% more, up to 16.2 million employed, driven by the rise in hospitality, which registered 69,000 more contributors, and health activities and social services, with almost 50,000 more. Meanwhile, the self-employed regime grew by 1,900 members, an increase of 0.06%, to a total of 3.3 million self-employed workers.
In addition, the number of workers on temporary layoff from employment (ERTE) reached at the end of July 331.486 affected, which means 116.439 workers less than in June, according to the date of discharge from the record and the Ministry of Inclusion, Social Security and Migration has highlighted that it is at the lowest level of affected since the onset of the pandemic, and 90% less than in may of 2020, when there were 3.6 million workers in ERTE.