Coronavirus: G20 nations to pump in $5 trillion into global economy

8

 

MADRID

The G20 nations have resolved to collectively inject $5 trillion into the global economy to combat the disruption caused by the coronavirus pandemic on economies world over. Saudi Arabia, which is the current chair of G20, urged the grouping to form a coordinated response to tackle the global crisis.

In a virtual G20 Summit, the member states pledged a “united front” in the fight against the coronavirus pandemic.

“We are injecting over $5 trillion into the global economy, as part of targeted fiscal policy, economic measures, and guarantee schemes to counteract the social, economic and financial impacts of the pandemic,” the leaders said in a statement after an emergency online summit.

Besides this, the world leaders also pledged to work swiftly with multilateral bodies such as the International Monetary Fund, the World Health Organisation and regional banks to deploy a “robust” financial package to support developing nations, news agency AFP reported.

In his address to the G20 summit, Chinese President Xi Jinping called for an “all-out global war” against novel coronavirus and proposed tariff cuts and removal of trade barriers to prevent the global economy slipping into recession.

Speaking at the emergency G20 Summit on Covid-19 through videoconference, President Xi said the world needs to be resolute in fighting an all-out global war against coronavirus which has created an unprecedented health crisis.

“This is a virus that respects no borders. The outbreak we are battling is our common enemy. All must work together to build a strongest global network of control and treatment that the world has ever seen,” Xi said.

Saudi Arabia’s King Salman called on G20 leaders to boost funding for a coronavirus vaccine, resume the normal flow of goods and services as soon as possible, and help developing countries overcome the global health crisis.

His remarks came at the opening of an extraordinary, 90-minute video conference convened by the world’s major economies to coordinate action over the outbreak that has infected more than 470,000 people and killed more than 21,000 worldwide.

“We must have an effective and coordinated response to this pandemic,” the king said. “On the trade front, the G20 must send a strong signal to restore confidence in the global economy by resuming, as soon as possible, the normal flow of goods and services, especially vital medical supplies.”

The G20, currently chaired by Saudi Arabia, has faced criticism of a slow response to the worsening crisis, which is expected to trigger a global recession.

Some member countries have announced economic stimulus packages to offset broad suspensions of air travel and shutdowns of many businesses.

The U.S. Chamber of Commerce urged G20 leaders to match a pledge by countries like Australia and Canada to keep supply chains open and avoid export controls.

World Health Organization director-general Tedros Adhanom Ghebreyesus was to address the G20 to seek support for ramping up funding and production of personal protection equipment for health workers amid a global shortage.

“We have a global responsibility as humanity and especially those countries like the G20,” Tedros told a news conference in Geneva late on Wednesday. “They should be able to support countries all over the world. Agencies