Leaders from the Group of 20 leading economies will convene a video convention on Thursday to debate the coronavirus epidemic, several sources advised Reuters, amid criticism that the group has been gradual to answer the worldwide disaster.
G20 finance ministers and central bankers agreed during a different video conference Monday to set up an “action plan” to respond to the pandemic, which the International Monetary Fund (IMF) expects will set off a global recession. The next statement from the Saudi G20 secretariat provided few details.
The extraordinary leaders’ summit will probably be complicated by an oil price war between two members – Saudi Arabia and Russia – and rising spats between two others, the U.S. and China, over the origin of the pathogen, which has infected 378,000 people worldwide and killed over 16,500 thus far.
IMF Managing Director Kristalina Georgieva has lauded the fiscal and monetary measures taken by some nations; however, he stated more would be required, particularly in the fiscal arena.
Agathe Demarais, global forecasting director at the Economist Intelligence Unit (EIU), mentioned given monetary policy limitations, the G20 nations’ sole option to help growth would be a fiscal stimulus; however, even that remains in question.
“It’s because the introduction of fiscal stimulus steps could raise the danger of a debt disaster once the coronavirus pandemic is over; such a prospect would have a disturbing effect on global progress,” she stated.