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G20 leaders agreed to inject $5tn into global economy

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The G20 nations on Thursday pledged to inject $5 trillion into the global economy to combat coronavirus crisis. “The magnitude and scope of this response will get the global economy back on its feet and set a strong basis for the protection of jobs and the recovery of growth,” a statement read. “We stand ready to react promptly,” it added.

 

G20 nations pledged and said,  they were injecting $5 trillion into the global economy to counter the pandemic amid forecasts of a deep recession. Saudi Arabia’s King Salman urges G20 leaders to take “effective and coordinated” action to combat the global crisis triggered by the coronavirus pandemic, amid forecasts of a deep economic recession.

 

US President Donald Trump and Russian President Vladimir Putin joined the emergency video conference chaired by Saudi Arabia’s King Salman, who called for coordinated action while facing pressure to end an oil price war between Riyadh and Moscow that has roiled energy markets.

 

The talks come amid criticism that the G20 has been slow to address the COVID-19 pandemic, which has left more than 21,000 dead worldwide and triggered financial shock waves as more than three billion people are locked down.

 

“We are strongly committed to presenting a united front against this common threat,” the leaders said in a joint statement after the summit.

 

“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 figure was a sum total of the fiscal stimulus packages adopted by individual G20 states, the Chinese foreign ministry said, adding that Beijing’s share amounted to $344 billion.

 

As concerns mount for poorer countries without access to capital markets or adequate health facilities, G20 leaders also pledged to work with bodies such as the International Monetary Fund to deploy a “robust” financial package to support developing nations.

 

“It is our responsibility to extend a helping hand to developing countries and (the) least developed countries,” King Salman said.

 

Putin called for a “moratorium” on sanctions during the pandemic, telling G20 leaders it was a matter “of life and death”.

 

French President Emmanuel Macron said on Twitter that “a strong initiative” would be launched to help African nations deal with the crisis.

 

He did not specify which countries should be earmarked for sanctions relief. Russia has faced numerous rounds of Western sanctions following the annexation of Crimea in 2014.

 

The world’s 20 most industrialised countries are scrambling to defend their virus-wracked economies amid forecasts they will likely plunge into a recession.

 

On Wednesday, the financial ratings agency Moody’s estimated the G20’s overall gross domestic product would contract by 0.5 percent this year, with the US economy shrinking by 2.0 percent and the eurozone by 2.2 percent.

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