$11 Trillion Dilemma, IMF Outlook Worsens, RBA Cruises: Eco Day

(Bloomberg) -- Welcome to Monday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

• Across the world, governments are finding it’s easier to provide virus relief than bring an end to it. McKinsey & Co. estimates deficits could reach $11 trillion this year
• Two months after its dire predictions of the steepest recession in almost a century, the IMF will release new global economic forecasts this week that will probably look even worse
• The Reserve Bank of Australia has shifted its yield curve control into cruise control having abstained from buying securities for 47 days now, the same length of time as its initial streak of purchases
• India’s Prime Minister Narendra Modi has walked into a diplomatic minefield over his nation’s disputed border with China
• The rupiah’s stellar rally may run out of steam after Bank Indonesia cut its benchmark interest rate and signaled the economy will expand less this year than previously thought
• As evidence mounts of the economic destruction from the pandemic, U.K. Chancellor of the Exchequer Rishi Sunak is examining ways to get consumers and businesses spending once again
• Italian Prime Minister Giuseppe Conte said his government would likely seek a wider budget gap as he draws up an ambitious reform plan to lobby for EU assistance
• For emerging markets, the virus recession starts with the pandemic, then layers on the worst elements of the 2008 global demand shock, the 2014 collapse in commodity prices, and the 2018 capital flight episode. The recovery will be shallow, writes Ziad Daoud
• An island haven that dodged the virus blow is now worried about an influx of tourists

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