Authorities in the US, Europe, Japan, China, and India are announcing increases in their spending by trillions of dollars in an effort to save the global economy from the recession.

The response to a coronavirus pandemic is unprecedented in speed and scale. Commitments made by governments and central banks have so far reached nearly 7 trillion USD. The total includes government spending, loan guarantees, and tax breaks, as well as central bank money to buy assets such as bonds and funds.

The figure includes a 2 trillion USD aid package undergoing congressional approval and an estimated 30 trillion JPY (274 billion USD) in stimulus from Japan, which can be approved next month.

The joint effort is reminiscent of the 2008 financial crisis, but economists are worried that the incentives taken so far will not be enough if the crisis widens beyond June.

“The 2 trillion USD stimulus package in the US is probably the minimum needed to offset the current impact of the contagion”, said Bank of America economist Joseph Song. “The economy will probably need nearly $ 3 trillion in fiscal stimulus, if not more”, he added.

G-20 leaders, representing the world’s largest economies, said on Thursday that they are ready to do “whatever is needed” to minimize economic damage from the pandemic and restore global growth.

“The size and scope of this response will bring back the global foot economy and create a strong basis for job protection and growth recovery”, the leaders said in a joint statement after the video conference. They say their countries have pledged 5 trillion USD in incentives.

Yet huge costs can only blunt some of the economic shocks. The economy cannot start to recover seriously until bars and restaurants start reopening, people go back to work and resume traveling. Even then, it will take time, as China discovered.

“It will not be possible to return to the same level of production and activity immediately”, said Chetan Ahya, chief economist at Morgan Stanley.

Here are the highlights of the first wave of action by central banks and governments.

USA

US lawmakers approved a 2 trillion USD fiscal stimulus package. The program includes direct payments to individuals, an increase in unemployment benefits, and a 500 billion USD lending program.

Congress has already approved more than 112 billion USD in support of vaccine research and the provision of two weeks’ paid sick leave for those affected by Covid-19.

In recent days, the Federal Reserve has announced a number of incentive measures. These include the original promise to buy government securities and mortgage bonds for a total value of 700 billion USD. Now the size limit for purchases has been removed and their scope has been extended to corporate bonds and fund units. The Fed also announced a new 300 billion USD in funding to help keep the flow of business and consumer loans flowing.

Great Britain

The UK government announced a 330 billion GBP (397 billion USD) package of loan guarantees and canceled local business tax payments in sectors such as retail and hospitality for 12 months. It will also cover 80% of the salaries of employees who earn up to 2,500 GBP (2,900 USD) per month for at least the next three months. It is unclear how much this initiative will cost.

In addition, the UK government on Thursday promised to provide self-employed persons with cash assistance of 80% of their average monthly salary or up to 2,500 GBP per month in the next quarter.

For its part, the Central Bank of the United Kingdom and Northern Ireland lowered its base interest rate to 0.1% and pledged to strengthen its bond repurchase program.

European Union

Germany has submitted a rescue package worth up to 750 billion EUR (825 billion USD), which includes measures to encourage business lending and direct involvement in companies.

France has approved 45 billion EUR (50 billion USD) in aid for small businesses and the unemployed. It also guarantees 300 billion EUR (330 billion USD) in corporate loans.

Italy is increasing its spending by 25 billion EUR (27.5 billion USD) to support the country’s employees and health care system, while Spain provides a package of 200 billion EUR (220 billion USD).

The European Central Bank has said it will spend 750 billion EUR (824 billion USD) in government debt and private equity purchases before the end of 2020, and is ready to do more if necessary.

China

So far, China has announced at least 116.9 billion CNY (16.4 billion USD) in financial incentives and incentives, plus 800 billion CNY (112.5 billion USD) in tax and fee cuts.

The People’s Bank of China has adopted various credit relief measures, allocating at least 1.15 trillion CNY (162 billion USD) to help businesses affected by the virus.

Japan

The Japanese government is expected to consider an economic stimulus package in the coming weeks, which is likely to include handing out cash, as well as measures to help small and medium-sized companies gain access to loans. The package could amount to 30 trillion JPY (274.2 billion USD).

The Central Bank of Japan says it will increase the annual rate of its purchases of 6 trillion JPY (55 billion USD) in listed funds and will increase the annual buying rate of real estate investment trusts by 90 billion JPY (822 million USD). The institution also raised its limit on corporate bond purchases by 2 trillion JPY (18 billion USD).

India

The Indian government announced a 22.6 billion USD aid package just 36 hours after quarantining the country. The program includes health coverage and nutritional assistance, as well as subsidies and benefits for cohabitants.