G20 countries are about to hold a virtual meeting on Covid-19.
(Baonghean.vn) - According to the latest sources, leaders of the Group of Twenty (G20) leading developed and emerging economies will hold an emergency meeting next Thursday (March 26) to discuss solutions to prevent the Covid-19 pandemic, as well as to halt the global economic recession caused by the disease's impacts.
Amid concerns that the G20 has been slow to respond to the escalating Covid-19 pandemic, Reuters reports that G20 leaders are expected to hold a video conference this coming Thursday to discuss the issue.
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Earlier on Monday (March 23), also in a video conference, the G20 Finance Ministers and Central Bank Governors agreed to push forward an action plan to address the outbreak, which could trigger a global economic recession as the International Monetary Fund (IMF) has warned.
The Secretariat of Saudi Arabia, this year's G20 chair, has also issued a statement regarding the upcoming preparatory meeting. According to the statement, this extraordinary summit of G20 leaders is expected to discuss many complex issues. These include the oil price war between Saudi Arabia and Russia, and the escalating tensions between the US and China over the origin of the SARS-CoV-2 virus that causes the Covid-19 pandemic, which has infected nearly 380,000 people and caused almost 17,000 deaths globally.
Recently, IMF Managing Director Kristalina Georgieva welcomed the emergency fiscal and monetary measures taken by countries to combat the impact of the Covid-19 pandemic, but also stated that more action is needed, particularly in the financial sector.
Agedit Demarais, Global Director of Forecasting at the Economist Intelligence Unit (EIU), commented that, given the current monetary policy constraints of countries, the only option to support growth is fiscal stimulus. However, even this solution requires careful consideration due to conflicting viewpoints.
Opponents argue that fiscal stimulus measures could increase the risk of a debt crisis once the Covid-19 pandemic ends. If this happens, it would negatively impact, or even devastate, global growth targets. This is also predicted to be a central issue that G20 leaders will have to discuss in order to decide on any stimulus packages – if any – for the global economy, which is on the verge of a severe recession due to the Covid-19 pandemic.