Faced with the threat of recession, the G20 meets urgently
G20 leaders hold a virtual summit on Thursday to try to coordinate their response to the unprecedented threat of recession that the new corona virus poses to the global economy.
US President Donald Trump and Russian President Vladimir Putin will join the video conference chaired by King Salman of Saudi Arabia, whose country is also in a hurry to end an oil price war.
Discussions take place when the global pandemic duty in the new corona virus has exceeded 21,000 dead and trapped in their homes in an unprecedented way more than three billion people worldwide.
“As the world faces the Covid-19 pandemic and the challenges facing health systems and the global economy, we are gathering this extraordinary G20 summit to join a global response,” said King Salman, who holds the G20 rotating presidency , on Twitter.
Financial rating agency Moody warned on Wednesday that the G20 economies as a whole are expected to be in recession this year due to the pandemic.
Overall, these countries are expected to reduce by 0.5% of their gross domestic product (). In the US this case will be 2% and in the euro area 2.2% (1.4% in France).
“The G20 economies will suffer an unprecedented shock in the first half and will contract throughout the year before recovering in 2021,” says the agency, which expects this recovery next year. 3.2% for the entire group.
While the rich countries, including the United States, have unveiled tremendous recovery plans, the G20 has so far presented no collective action program, and worries are intensifying for the poor countries that do not have access to the capital markets and do not have adequate healthcare services.
Tedros Adhanom Ghebreyesus, Head of the World Health Organization (), urged the G20 to offer support to “low-income and middle-income countries”, especially in sub-Saharan Africa.
The International Monetary Fund () and the World Bank (WB) have urged the G20 to suspend payment of the debts of the poorest countries.