G20 ministers weigh coronavirus risks
CHINA WILL NOT BE SENDING ANY LEADERS FROM BEIJING
Finance ministers and central bank governors from G20 nations weighed the potential impact of the coronavirus epidemic on the world economy as they met in Riyadh yesterday.
At the meeting in Saudi Arabia, the first Arab nation to hold the G20 presidency, financial leaders from the world’s top 20 economies are also seeking consensus on ways to achieve a global taxation system for the digital era.
The gathering comes amid growing alarm over the new coronavirus as Chinese authorities lock down millions of people to prevent the spread of the disease, with major knock-on effects for the global economy.
The virus has now claimed 2,345 lives in China, cutting off transportation and forcing businesses to close their doors.
The impact of the epidemic could see a “V-shaped” trajectory, with a sharp decline in China’s GDP followed by a sharp recovery, but the situation could have more dire consequences for other countries as the impacts spill over, said IMF chief Kristalina Georgieva.
At the core of discussions at the gathering is an action plan to shield the world economy — already facing a slowdown — from the impact of the outbreak, said French Finance Minister Bruno Le Maire.
‘Key question’
“The question remains open: whether it will be a V-shape with a quick recovery of the world economy or whether it would lead to a L-shape with a persistent slowdown in world growth,” Le Maire told reporters. “This is the key question.”
China has said it will not be sending any leaders from Beijing for the Riyadh gathering, chaired by the kingdom’s finance minister Mohammad Al Jadaan and central bank governor Ahmad Al Kholifey. But it said the Chinese ambassador in the kingdom will instead lead a small delegation.
“We have been closely watching the developments of the virus and assessing its potential effects on economic growth,” a senior US Treasury official told reporters.
“We expect ministers and governors will discuss the global economic outlook, particularly as it relates to the coronavirus outbreak.”