Leaders of seven nations to discuss recession threat to world economy
LEADERS OF the seven richest democracies are to host discussions today in the wake of warnings over the impact of coronavirus on teetering economies.
French President Emmanuel Macron has revealed that leaders from the US, Britain, Italy, Japan, Germany and Canada are to join a telephone conference.
And while action is being taken in efforts to stabilise economies, there are concerns from experts that current efforts are being undertaken without coordination or consultation.
The world economy is increasingly looking as though it will fall into recession, amid beliefs Europe and Japan are almost certain to see a big contraction in the first half of this year. The US is facing a steep slowdown and China’s growth is forecast as low as one per cent at the start of the year, the weakest in decades, from six per cent previously.
A “piecemeal” approach has caused concern among former policymakers who dealt with previous crises, including ex-ECB chief Jean-Claude Trichet.
He told the BBC that it “is absolutely appalling that the US took a decision to stop people coming in without any warning or any discussion with the Europeans”.
He added: “I think that it is
Former Labour Chancellor of the Exchequer Alistair Darling, without precedent and it is an illustration of the drama where we are.
“We need a global response. We need the market to understand that there is some kind of global co-ordination.”
Former Chancellor of the Exchequer Alistair Darling said that one of the reasons that the global economy recovered 10 years ago was because of “international co-operation”.
“We all did the same thing,” he said. “International co-operation at the moment is in something of short supply.”
International co-operation is in something of short supply