Stimulus Check Qualification Rules Could Change With a Second Payment

Congress is scrambling to piece together another relief package before the end of the year that would, if some legislators have their say, include a second economic stimulus check for individuals and families who meet the requirements.

Sen. Bernie Sanders, an independent, and Sen. Josh Hawley, a Republican, are looking to modify a $908 billion plan with an amendment that would authorize a second check for up to $1,200. The unamended proposal doesn’t include another direct payment. If Sanders and Hawley’s amendment is successful, the new payment would likely follow the same outlines of the first stimulus check for speed and simplicity, but even minor changes could have a significant impact for millions.

Another new proposal, this time from the White House, would provide $600 apiece for each qualifying adult and child, Though it’s less likely we’ll see this proposal become law, if it did it would clearly affect how much money a household could get, by halving the share per qualifying adult and increasing it by $100 per eligible child dependent

Even if no stimulus check is approved in 2020, the discussions happening now could impact the stimulus check conversation in early 2021. There’s clearly enough support for a second round of aid before there are enough available doses of the COVID-19 vaccine to inoculate the US population.

Read on for more information about what may happen to stimulus eligibility now. We update this story often.

How the qualifications could change with a new bill

While many members of Congress agree on the need for more aid, they differ on the specifics, and the two sides continue to discuss who needs assistance and how much to spend. Based on proposals that’ve been on the table this fall, here’s what lawmakers could do (or have already done):

Update the definition of a dependent: The CARES Act capped eligible dependents at kids age 16 and younger. One proposal this summer expanded the definition to any dependent, child or adult, you could claim on federal taxes. That means families with older kids or older adults at home could potentially see $500 more in their check total per individual if that proposal is adopted.

Read more: Nobody can take your stimulus check away, right? Not quite

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If the definition of a dependent changes, your family could benefit. Angela Lang/CNET

Raise the amount of money per child dependent: One White House proposal from October would’ve kept the definition of a child dependent used in the CARES Act but increased the sum per individual to $1,000 on the final household check. (Based on that, here’s how to estimate your total stimulus money and here’s the IRS’ formula for families.)

The White House’s new Dec. 8 proposal would reportedly raise the sum for each qualifying child to $600, up from $500 in the CARES Act.

Stop seizing overdue child support: The Democrats this summer pushed to let a parent who owed child support receive a payment; the original CARES Act allowed the government to redirect payments to cover overdue support.

Send checks to people who are incarcerated: After months of back and forth, the IRS is sending checks to those who are incarcerated and eligible for a payment. A Republican plan this summer would’ve excluded the payments.

Include noncitizens: The CARES Act made a Social Security number a requirement for a payment. Other proposals would’ve expanded the eligibility to those with an ITIN instead of a Social Security number because they’re classified as a resident or nonresident alien. A Republican plan this summer would’ve excluded those with an ITIN.

Who could qualify for a second stimulus check

Qualifying groupLikely to be covered by the final bill
IndividualsAn AGI of less than $99,000 (Same as CARES)
Head of householdAn AGI of less than $146,500 (Same as CARES)
Couple filing jointlyAn AGI less than $198,000 (Same as CARES)
Dependents of any ageNo limit (HEALS proposal; up to 3 in Heroes)
US citizens living abroadYes, same as CARES
Citizens of US territoriesLikely, with payments handled by each territory’s tax authority (CARES)
SSDI and tax nonfilersLikely, but with an extra step to file (more below)
Uncertain statusCould be set by court ruling or bill
Incarcerated peopleExcluded under CARES through IRS interpretation, judge overturned
Undocumented immigrantsQualifying “alien residents” are currently included under CARES
Disqualified groupUnlikely to be covered by the final bill
Noncitizens who pay taxes (ITIN)Proposed in Heroes, unlikely to pass in Senate
Spouses, kids of ITIN filersExcluded under CARES, more below
People who owe child supportIncluded in Heroes proposal, but excluded under CARES

Would the income limits be similar with another check?

Under the CARES Act, here are the income limits based on your adjusted gross income for the previous year that would qualify you for a stimulus check, assuming you met all the other requirements. (More below for people who don’t normally file taxes.) With the amendment proposed by Sanders and Hawley on Dec. 10, the requirements guidelines would follow those set out in the CARES Act.

  • You’re a single tax filer and earn less than $99,000.
  • You file as the head of a household and earn under $146,500.
  • You file jointly with a spouse and earn less than $198,000 combined.

What role do my taxes play in how much I could get? What if I don’t file taxes? 

For most people, taxes and stimulus checks are tightly connected. For example, the most important factor in setting income limits is adjusted gross income, or AGI, which determines how much of the total amount you could receive, be it $600 or $1,200 for individuals and $1,200 or $2,400 for married couples (excluding children for now).

Our stimulus check calculator can show you how much money you could potentially expect from a second check, based on your most recent tax filing and a $1,200 per person cap. Read below for your eligibility if you don’t typically file taxes.

coins-measuring-spoons
How much stimulus money you could get depends on who you are. Angela Lang/CNET

What should retired and older adults know?

Many older adults, including retirees over age 65, received a first stimulus check under the CARES Act, and would likely be eligible for a second one. For older adults and retired people, factors like your tax filingsyour AGI, your pension, if you’re part of the SSDI program (more below) and whether the IRS considers you a dependent would likely affect your chances of receiving a second payment. 

If I share custody or owe child support, how does that affect eligibility?

Due to a specific rule, if you and the other parent of your child dependent alternate years claiming your child on your tax return, you may both be entitled to receive $500 more in your first stimulus check, and in the second if that rule doesn’t change.If you owe child support, your stimulus money may be garnished for arrears (the amount you owe). https://playlist.megaphone.fm/?e=CBS4695642448&light=true

I haven’t submitted my federal tax return for at least two years. Can I still get money?

People who weren’t required to file a federal income tax return in 2018 or 2019 may still be eligible to receive the first stimulus check under the CARES Act. If that guideline doesn’t change for a second stimulus check, this group would qualify again. Here are reasons you might not have been required to file:

  • You’re over 24, you’re not claimed as a dependent and your income is less than $12,200.
  • You’re married filing jointly and together your income is less than $24,400.
  • You have no income.
  • You receive federal benefits, such as Supplemental Security Income or Social Security Disability Insurance. See below for more on SSDI.

With the first stimulus check, nonfilers needed to provide the IRS with some information before they could receive their payment. (If you still haven’t received a first check even though you were eligible, the IRS said you can claim it on your taxes in 2021.) This fall, the IRS attempted to contact 9 million Americans who may’ve fallen into this category but who haven’t requested their payment. Those in this group can claim their payment on next year’s taxes.

I’m part of the SSI or SSDI program. Am I eligible to get a stimulus check?

Those who are part of the SSI or SSDI program also qualify for a check under the CARES Act. Recipients wouldn’t receive their payments via their Direct Express card, which the government typically uses to distribute federal benefits, but through a non-Direct Express bank account or as a paper check. SSDI recipients can file next year to request a payment for themselves and dependents.

For more, here’s what we know about the major proposals for another stimulus package. We also have information on unemployment insurance, what you can do if you’ve lost your job and what to know about evictions.

Coronavirus updates

First published on June 25, 2020 at 4:15 a.m. PT.BudgetingTaxesPoliticsPersonal Finance How To

By: Clifford Colby, Julie Snyder, Katie Conner

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Wuhan to Test All 11 Million Residents After Handful of New Infections

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(BANGKOK) — Authorities in the Chinese city where the coronavirus pandemic began were moving forward Wednesday with efforts to test all 11 million residents for the virus within 10 days after a handful of fresh infections were found there.

The U.S. government’s top infectious disease expert, meanwhile, issued a blunt warning that cities and states could see more COVID-19 deaths and economic damage if they lift stay-at-home orders too quickly — a sharp contrast to President Donald Trump, who is pushing to right a free-falling economy.

“There is a real risk that you will trigger an outbreak that you may not be able to control,” Dr. Anthony Fauci warned a Senate committee and the nation Tuesday as more than two dozen states have begun to lift their lockdowns.

The tension in balancing people’s safety from the virus against the severe economic fallout is playing out in many other countries, too. Italy partially lifted lockdown restrictions last week only to see a big jump in confirmed coronavirus cases in its hardest-hit region. Pakistan reported 2,000 new infections in a single day for the first time after the easing of its lockdown saw crowds of people crammed into markets throughout the country.

China, the first nation to put a large number of its citizens under lockdown and the first to ease those restrictions, has been strictly guarding against any resurgence.

District health commissions and neighborhood committees in the city of Wuhan have been told to develop a plan to test all residents in their jurisdictions, local media reports said. The directive also said the testing should focus on the elderly, densely populated areas and places with mobile populations.

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A person who answered the mayor’s hotline in Wuhan on Wednesday said local districts had been given 10 days to carry out the tests. The official declined to give his name because she was not authorized to speak to reporters.

The first cases of the new coronavirus were found in Wuhan in December, and by the end of January the government had placed the entire city and the surrounding region, home to more than 50 million people, under a strict lockdown.

A cluster of six new cases was recently found in one part of the city, the first local infections the government has reported in Wuhan since before the lockdown was eased in early April.

It wasn’t clear how many people would actually still need to be tested, as one expert at Wuhan University told the Global Times newspaper that up to 5 million residents of Wuhan have already been tested since the outbreak began.

Worldwide, the virus has infected more than 4.2 million people and killed over 291,000 — with more than 82,000 deaths in the U.S. alone, the world’s highest toll. Experts say the actual numbers are likely far higher.

Progress was being made in many places, including New Zealand, which reported no new cases on Wednesday. It was the second day in a row without any and the fourth such day since early last week.

Director-General of Health Ashley Bloomfield said it was encouraging news as New Zealand prepares to ease many of its lockdown restrictions on Thursday. Most businesses, including malls, retail stores and sit-down restaurants, will be able to reopen. Social distancing rules will remain in place and gatherings will be limited to 10 people.

“The sense of anticipation is both palpable and understandable,” Bloomfield said.

Authorities in South Korea said Wednesday that they had no immediate plans to revive strict social distancing rules despite a spike in cases linked to nightclubs in Seoul.

In his Senate testimony, Dr. Fauci said more infections and deaths are inevitable as people again start gathering, but how prepared communities are to stamp out those sparks will determine how bad the rebound is.

“There is no doubt, even under the best of circumstances, when you pull back on mitigation you will see some cases appear,” Fauci said.

Move too quickly and “the consequences could be really serious,” he added. It not only would cause “some suffering and death that could be avoided, but could even set you back on the road to try to get economic recovery.”

With more than 30 million people unemployed in the U.S., Trump has been pressuring states to reopen.

A recent Associated Press review determined that 17 states did not meet a key White House benchmark for loosening restrictions — a 14-day downward trajectory in new cases or positive test rates. Yet many of those states have begun to reopen or are about to do so, including Alabama, Kentucky, Maine, Mississippi, Missouri, Nebraska, Ohio, Oklahoma, Tennessee and Utah.

Of the 33 states that have had a 14-day downward trajectory, 25 are partially opened or moving to reopen within days, the AP analysis found. Other states that have not seen a 14-day decline remain closed despite meeting some benchmarks.

Fauci expressed optimism that eventually vaccines will arrive, along with treatments in addition to the one drug that so far has shown a modest effect in fighting COVID–19. But it would be “a bridge too far” to expect them in time for fall, when schools hope to reopen, he said.

Although Trump declared this week that “we have met the moment, and we have prevailed” in increasing and improving virus testing, Republican senators on the panel were noticeably less sanguine.

A lack of testing has dogged the U.S. response from the beginning, when a test developed by the Centers for Disease Control and Prevention ran into numerous problems. Sen. Mitt Romney said the U.S. may finally have outpaced testing leader South Korea but that country has far fewer deaths because it started testing early.

“I find our testing record nothing to celebrate whatsoever,” said Romney, a Republican from Utah.

Trump administration “testing czar” Adm. Brett Giroir said the U.S. could be performing at least 40 million to 50 million tests per month by September. That would work out to between 1.3 million and 1.7 million tests per day. Harvard researchers have said the U.S. must be doing 900,000 by this Friday in order to safely reopen.

Neergaard reported from Washington. Associated Press journalists around the world contributed to this report.

By CHRIS BLAKE and LAURAN NEERGAARD

Source: https://time.com

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The Economy Shrank 4.8% Last Quarter—The Biggest Contraction Since 2009—But The Worst Is Still To Come

U.S. gross domestic product—a measure of the value of all the goods and services produced by the economy—declined 4.8% in the first three months of 2020, according to data released by the Commerce Department; this is the worst quarterly decline in a decade, but experts agree that the numbers haven’t even begun to reflect the scope of the economic damage caused by the coronavirus.

KEY FACTS

The sharp contraction in GDP reflects the economic toll that measures intended to contain the coronavirus, like social distancing, layoffs, and business closures, have taken on the American economy.

Economic output hasn’t shrunk at all since the beginning of 2014, when it fell 1.1%, and there hasn’t been a drop this steep since the height of the Great Recession in 2009.

After an 11-year period of strong economic performance, temporary unemployment claims ballooned to more than 26 million in a matter of weeks as the coronavirus crisis took hold.

Experts were predicting a contraction of about 4% for the first quarter, and there is widespread consensus that next quarter’s numbers will be even more dire.

Last week, the Congressional Budget Office predicted that GDP growth will plunge a jaw-dropping 40% in the second quarter from the same time last year; the CBO also predicts that growth will slow 11.8% from the first quarter, which would be the biggest loss since the Commerce Department began tracking GDP data in 1947.

Crucial quote

“Prior to the coronavirus shock, the economy was doing relatively well,” Gregory Daco, chief U.S. economist for Oxford Economics, told NPR. “The shock that we experienced in the second half of March actually has led to a sudden stop in spending on a lot of services and even spending on some goods.” Unfortunately, Daco said, that shock is “only the tip of the iceberg.”

Big Number

$3.7 trillion. That’s how high the Congressional Budget Office expects the federal budget deficit will be by the end of the current fiscal year after a month of historic government spending on emergency rescue initiatives like the CARES Act.

What to watch for

Officials from the Federal Reserve will conclude a two-day meeting on Wednesday afternoon. Over the last month, the Fed has rewritten its playbook and made unprecedented interventions to prop up the economy. It’s announced new emergency initiatives worth trillions of dollars, including programs that will extend its reach to small and midsize businesses, as well as state and municipal governments—both unprecedented interventions into markets the Fed has historically avoided. It also cut rates to nearly zero, stepped in to backstop a $350 billion emergency small business loan program administered by the Small Business Administration, and purchased billions of dollars’ worth of government debt and mortgage-backed securities. More action is expected this afternoon.

Further reading

Federal Budget Deficit Will Approach $4 Trillion In 2020, CBO Says, As The Economy Continues To Nosedive (Forbes)

The Fed Will Pump Another $2.3 Trillion Into The Economy. Here’s Why This Time Is Different (Forbes)

Another 4.4 Million Workers File Unemployment Claims As Coronavirus Labor Crisis Deepens (Forbes)

Another Small Business Headache: Some Employees Are Asking To Be Laid Off Thanks To Higher Unemployment Benefits (Forbes)

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I’m a breaking news reporter for Forbes focusing on capital markets and finance. I completed my master’s degree in business and economic reporting at New York University. Before becoming a journalist, I worked as a paralegal specializing in corporate compliance.

Source: The Economy Shrank 4.8% Last Quarter—The Biggest Contraction Since 2009—But The Worst Is Still To Come

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The U.S. economy contracted to start the year… for the first time in three years. The commerce department says gross domestic product contracted at an annual rate of one percent in the first quarter. The government’s initial estimate was of 0-point-one percent quarterly growth. However, experts say it’s only a temporary setback in the long road to recovery. They forecast a robust rebound in the second quarter, fueled by strong demand. Some economists said they are optimistic that growth will remain above 3 percent in the second half of this year… as labor market conditions are improving and consumer spending is picking up.

Austria Set To Be Europe’s First Country To Ease Lockdown

Austria is set to be one of the first countries in Europe to ease its lockdown against the coronavirus outbreak. The conservative-led government announced plans on Monday to start reopening non-essential stores next week, after reaching a downward trend in the growth rate of new infections. The government will also extend a requirement to wear face masks in supermarkets to include public transport and stores that reopen.

Austria recorded 12,058 cases of the coronavirus and 220 deaths as of April 6, fewer than its neighbors Italy and Switzerland. More than 6,300 per one million people (55,863) in Austria’s population of nine million have been tested. The growth rate of daily new infections has already decreased by 2.8% from over 40% in mid March, health authorities said. While the number of people in hospital has stabilized, Chancellor Sebastian Kurz said during a 30 March news conference that intensive care capacity could be exceeded as early as mid-April.

Kurz presented a timetable on April 6 to restart the Austrian economy, outlining a series of phases to normalize life while minimizing the risk of a surge in new infections. “There will be a step-by-step reopening,” Kurz told a news conference. Non essential stores of less than 4306 square feet (400 square meters) and DIY shops will be opened on April 14, followed by all shops, malls and hairdressers on May 1, he said.

“At first, the public discussion seemed to be all about public health, but now it appears to be moving more towards damage to the economy because of the measures taken by the government,” says Florian Peschl, a Vienna based political advisor to the New Austria and Liberal Forum (NEOS) parliamentary group.

Austria introduced major restrictions on March 16, closing schools, restaurants, bars, theatres, non-essential stories and banning gatherings of more than five people. Residents were told to stay at home and work from there if possible.

“Streets have been almost completely empty. Even though more people have been coming out because it’s sunny, most people seem to be on the side of the government and are abiding by the rules. There’ll be no doubt be relief about the easing of restrictions, but at the same time there’s a lot of caution. We know this can be quickly revoked if it doesn’t go well,” says Peschl.

Various other governments across Europe have begun preparations to roll back the lockdowns. Spain, France, Belgium and Finland are among many countries that have set up expert committees to examine a gradual relaxing of social restrictions, but up against enormous uncertainties, officials have yet to commit to a strategy.

The Austrian plan also makes clear that months of restrictive measures still lie ahead. Kurz urged Austrians to cancel any plans to celebrate Easter this week and emphasized that restrictions could only be eased if orders were strictly followed. “Keep to the measures, avoid social contacts, keep your distance in public space,” he said.

By Madeline Roache April 6, 2020 11:39 AM EDT

Source: Austria set to be Europe’s first country to ease lockdown

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Why Is the Coronavirus Outbreak So Bad in Italy?

On Monday, Italy placed its 60 million residents under lockdown, as the number of cases of the COVID-19 virus throughout the country continues to rise.

In less than a month, Italy has gone from having only three cases of the coronavirus to having the highest number of cases and deaths outside of China, with 463 deaths and at least 9, 172 of people infected throughout all 20 regions of the country. The number of cases rose by 50% on March 8 alone. Italy also faces an above average mortality rate of 4%.

“We all must give something up for the good of Italy,” Italian Prime Minister Giuseppe Conte said in a televised address on Monday while announcing the nationwide lockdown. “There is no more time.”

The nationwide lockdown is expected to have major economic repercussions on the country, where growth was already stagnating. While the government has not specified exactly how long the ban will last, it says it will remain in place until April 3.

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Here is how the virus spread across the country — and why it is so much worse in Italy than any other European country:

How did coronavirus start spreading in Italy?

Officially it began in Feb. 20, when a 38-year-old man checked himself into a local hospital in the town of Codogno in Lombardy. He tested positive with the virus, becoming the first recorded patient with the COVID-19 virus in Italy.

Yet some health officials believe that the virus arrived in Italy long before the first case was discovered. “The virus had probably been circulating for quite some time,” Flavia Riccardo, a researcher in the Department of Infectious Diseases at the Italian National Institute of Health tells TIME. “This happened right when we were having our peak of influenza and people were presenting with influenza symptoms.”

Before the first case was reported, there was an unusually high number of pneumonia cases recorded at a hospital in Codogno in northern Italy, the head of the emergency ward Stefano Paglia told the newspaper La Repubblica, suggesting it is possible patients with the virus were treated as if they had a seasonal flu. Health facilities hosting these patients could have become sites for infection, helping proliferate the spread of the virus.

The northern regions of Lombardy, Veneto and Emilia-Romagna, have been most affected by the outbreak. 85% of infected patients are in the region which is home to 92% of deaths so far. But the virus has been confirmed in all 20 regions of the country.

Why does Italy have such a high number of cases and deaths?

Because the virus spread undetected, some officials believe this is the reason for such a high number of cases in the country. “This started unnoticed which means by the time we realized it, there were a lot of transmission chains happening,” Riccardo says, noting that this may be why Italy has seen such a high number of cases.

Some officials also believe Italy, which has already tested over 42, 000 people, may have a higher number of cases as a result of performing more rigorous tests than their European counterparts.

Italy, however, is also reporting an above average mortality rate at 4%. The average age of coronavirus patients who have died because of the virus in Italy is 81, according to the National Health Institute. Italy, which has one the world’s oldest populations, could be facing a higher mortality rate as a result of its above-average elderly population. “Italy is the oldest country in the oldest continent in the world,” says Lorenzo Casani, the health director of a clinic for elderly people in Lombardy told TIME. “We have a lot of people over 65.”

Casani also suggests the mortality rate might be higher than average because Italy is testing only the critical cases. “We are not doing enough,” he said.

Casani says that pollution in northern Italy could be a factor in higher death rates. According to a report by the Swiss air monitoring platform IQAir, 24 of Europe’s 100 most polluted cities are in Italy. “Studies have shown a high correlation between mortality rates from viral respiratory conditions and pollution,” Casani says. “This could be a factor.”

Was the Italian government prepared for the outbreak?

The outbreak in Italy has come as a surprise to some, given the stringent measures Italy imposed to protect itself from the virus. A month before the first case was reported, the Italian Health Ministry created a task force to manage coronavirus. Italy was the first European Union country to ban flights to and from China.

The travel ban, however, may have encouraged travellers to come in on connecting flights without disclosing their country of departure. Some experts also believe the virus could have entered the country before the government took action, spreading undetected throughout the country.

How is the government responding now?

The Italian government has taken the biggest steps outside of China to curb the spread of the disease.

Under the new lockdown legislation, people can be issued fines for traveling within or outside the country without a permit, though foreigners still can travel to Italy. All public events are banned and schools have been cancelled throughout the country. Public spaces, such as gyms, theatres and cinemas, have also been closed by the government. Individuals who defy the lockdown could face up to three months in jail or a fine of $234. The new rules prohibit inmates from having visitors or day releases, which set off protests at 27 prisons throughout the country.

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Many have applauded Italy’s actions. In a tweet, the Director-General of the World Health Organization commended Italy for its “bold, courageous steps” and for “making genuine sacrifices.”

Some infectious disease and public health experts, however, have concerns about the effectiveness of the lockdown.

“These measures will probably have a short-term impact,” John Edmunds, a professor at the London School of Hygiene & Tropical Medicine told Reuters, noting that the measures were “almost certainly unsustainable.” He added, “if they can’t be sustained for the long term, all they are likely to do is delay the epidemic for a while.”

How is the Italian healthcare system handling it?

Italy’s current national health service, known as Servizio Sanitario Nazionale (SSN), provides free universal care to patients yet remains under-funded. Investments in public healthcare make up only 6.8% of the country’s gross domestic product (GDP), which is lower than other countries in the European Union including France and Germany.

“The continuous cuts—to care and to research—are obviously a problem right now,” Casani says. “We were not prepared. We do not have enough doctors for the people. We do not have an organized plan for pandemics.”

With the number of coronavirus cases on the rise, the Italian health ministry has doubled the number of hospital beds in infectious disease wards. The Governor of Lombardy Attilio Fontana has requested that universities grant degrees earlier this school year in order to increase the number of nurses in Italy. Yet some health officials fear these efforts will not be enough.

“Right now in Lombardy, we do not have free beds in intensive care units,” Casani says. He added that doctors “have to make this horrible choice and decide who is going to survive and who is not going to survive…who is going to get a monitor, a respirator and the attention they need.”

What impact will the lockdown have on the Italian economy?

The lockdown could push Italy into a recession. Berenberg bank, which before the outbreak estimated that Italy’s GDP would contract by 0.3%, now forecasts it will fall by 1.2% this year.

Lombardy, the region most affected by the outbreak, account for one-fifth of Italy’s GDP. The Italian tourism sector, which makes up 13% of the country’s GDP, is projected to lose $8.1 billion, according to the Associated Press, as a result of 32 million fewer foreign travelers.

Conte said on March 9 that the government would deploy a “massive shock therapy” in order to protect the economy. Italy’s Deputy Economy Minister, Laura Castelli said in an interview with Rai Radio 1 today that “mortgages, taxes, everything is suspended” as a result of the lockdown. The government has also created a support package of $8.5 billion for families and businesses affected by virus.

Some experts are concerned about the long-term implications of this spending.

Before the coronavirus outbreak, Italy was already struggling with a public debt that is at 134% of the country’s GDP. In the Europe Union, countries are not supposed to have debt that is higher than 60% of their country’s GDP. “With the increased spending that comes with having to support people and businesses, the deficit might explode,” says Pepijn Bergsen, a Europe Research Fellow at Chatham House.

An economic slowdown in Italy, a country in the Eurozone, will have impacts on the rest of the continent.

“It is likely there will be a Eurozone wide recession this year,” Bergsen says, citing both an Italian recession and potential future lockdowns in other European Union countries as contributing factors. “It will be difficult for authorities to come up with any measures that would avoid a recession.”

Please send any tips, leads, and stories to virus@time.com.

Here’s what you need to know about coronavirus:

By Mélissa Godin March 10, 2020

Source: Why Is the Coronavirus Outbreak So Bad in Italy?

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