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G20 pumps $ 5 trillion into the global economy to combat the Coronavirus

27 Mar 2020 12:26 PM

On Thursday, leaders of G20 major economies pledged to pump more than $ 5 trillion into the global economy to reduce job losses and income from the Coronavirus and do whatever was necessary to overcome the epidemic.

Showing more unity than at any time since the G20 was created during the 2008-2009 financial crisis, the leaders said that during a video summit they committed themselves to implementing and financing all health measures needed to stop the spread of the virus.

They also affirmed that the G20 is committed to doing everything necessary to overcome the epidemic, along with the World Health Organization and other international institutions.

Their statement contained the most conciliatory language on trade for years, pledging to ensure the flow of vital medical supplies and other goods across borders and resolving supply chain disturbances, but it fell short of calling for an end to the export ban imposed by many countries on medical supplies, as G20 leaders said. Their responses should be coordinated to avoid unnecessary interference.

Saudi Arabia, the current head of G20, has called for the video summit, amid earlier criticism of the group's slow response to the disease. Over 500,000 people worldwide have been infected so far, and nearly 24,000 people have died, as the spread of the virus is expected to lead to a global recession.

The group said it will pump more than $ 5 trillion into the global economy, as part of targeted fiscal policy, economic measures and guarantee plans, to reduce the economic repercussions of the epidemic.

The amount is almost the same for the G20 nations that were pumped to support the global economy in 2009, but the US Relief Bill pledged $ 2 trillion in financial spending, more than double their commitment from that crisis.

The G20 leaders also asked the International Monetary Fund and the World Bank to support countries in need by using all tools to the maximum extent.

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