G20 commits $5 trn spending; aims to boost world economy in coronavirus

The G20 has pledged to spend $ 5 trillion in block economies to help an imminent global slowdown of the coronavirus pandemic.

Driven by targeted fiscal policy, economic measures and guarantee systems, it will neutralize the social, economic and financial impacts of the pandemic, said the leaders’ summit final statement released on Thursday. “We call on our finance ministers and central bank governors to regularly coordinate the development of a G20 action plan in response to COVID-19 and to work closely with international organizations to deliver aid quickly appropriate international finance, “the statement said.

Held by videoconference, the Saudi Arabian summit also committed to increase manufacturing capacity to meet the growing need for medical supplies and to ensure that they are widely available, at an affordable price, on a equitable basis, where it is most needed and as quickly as possible. Health ministers were also mandated to meet as needed to share national best practices and develop a set of urgent G20 actions on joint pandemic response at their ministerial meeting in April.

Nations have decided to share timely and transparent information; exchange epidemiological and clinical data; share the material needed for research and development; and strengthen global health systems. The summit also decided to provide immediate resources to the WHO COVID-19 Solidarity Response Fund, the Coalition for Epidemic Preparedness and Innovation (CEPI) and Gavi, Vaccine Alliance, on a voluntary basis.

The leaders also asked the World Health Organization to submit to assess the gaps in pandemic preparedness and to report to a joint meeting of finance and health ministers in the coming months. This decision will establish a global initiative on pandemic preparedness and response.

G20 trade ministers are now expected to meet soon to assess the impact of the pandemic on world trade. In rare solidarity after years of bitter trade differences, G20 leaders have now committed to come together to “ coordinate trade responses so as to avoid unnecessary interference with international trade and commerce ”. The leaders’ summit also saw the decision to implement emergency measures to protect health through targeted, proportionate, transparent and temporary interjunctions.

In addition, member countries have decided to ensure the flow of vital medical supplies, essential agricultural products and other goods and services across borders, and are working to resolve disruptions in global supply chains.

However, rather than focusing on the big players, the discussion took particular care in meeting the challenges of the poorest economies. “We are gravely concerned about the serious risks posed by all countries, in particular

developing and least developed countries, especially in Africa and small island states, “said the statement.

The G-20 also urged central banks in member countries to support the flow of credit to households and

businesses, promote financial stability and increase liquidity in global markets. He also welcomed the extension of the swap lines that our central banks have undertaken.

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