G20 ready to limit effects of coronavirus on global economy, Saudi finance minister

Saudi Minister of Finance Mohammed Al-Jadaan speaks during a media conference with Saudi Arabia’s central bank governor Ahmed Al-Kholifey, in Riyadh, Saudi Arabia, Feb. 23, 2020. (AFP)
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Updated 24 February 2020

G20 ready to limit effects of coronavirus on global economy, Saudi finance minister

  • G20 will continue to take joint action to strengthen international co-operation and frameworks
  • Finance ministers agree measures to tackle global problems, coronavirus

RIYADH: The meeting of G20 finance ministers and central bank governors ended in Saudi Arabia with a determination to tackle pressing global concerns such as geopolitical and trade confrontations, as well as the challenge of the coronavirus outbreak.
The official communique — hammered out among the G20 policy-makers gathered in Riyadh over two days of discussions — said that global economic growth was expected to pick up “modestly” this year and next, on signs of improving financial conditions and some signs of easing trade tensions.
“However, global economic growth remains slow, and downside risks to the outlook persist, inching those arising from geopolitical and remaining trade tensions, and policy uncertainty. We will enhance global risk monitoring, including the recent outbreak of COVID-19 (coronavirus). We stand ready to take further action to address those risks,” the communique said.

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On so-called “trade wars” between the US and China — which was not represented at the Riyadh meeting because of the outbreak — the communiqué said: “We will continue to take joint action to strengthen international co-operation and frameworks, and also reaffirm our commitments on exchange rates.”
There was general agreement by the ministers on measures on infrastructure investment, technology development, and plans to boost domestic capital markets across the world, especially in emerging and developing countries.
But a note of caution was also sounded in several areas.The G20 finance ministers said that “we are facing a global landscape that is being rapidly transformed by economic, social, environmental, technological and demographic changes.”
Apart from that mention of the environment, there was little attention given to the contentious issue of climate change. Towards the end of the communique, the ministers and governors said: “The financial stability board (of the G20) is examining the financial stability implications of climate change.”
The finance ministers’ gathering is the first formal event in preparation for the summit of world leaders that will take place in Saudi Arabia in November, with the three key aims of empowering people, safeguarding the planet and shaping new frontiers in technology and innovation.
The international taxation system was an area of focus at the finance ministers meeting, with some countries threatening a controversial digital tax. The communique said that “we continue to support tax capacity building in developing countries,” and called on all countries to sign multilateral agreements on tax matters. “We remain committed to the full, timely and consistent implementation of the agreed financial reforms,” it added.
Other big themes of the financial G20 meeting included inclusion of youth and women in the financial process. “We support the emphasis on digital financial inclusion of under-served groups, especially youth, women and small businesses,” the communique said.
There was also strong support for the work of the global Financial Action Task Force in combating money laundering and terrorism finance. “We reiterate our strong commitment to tackle all sources, techniques and channels of these threats,” the G20 ministers said, also backing measures to tackle the financing of nuclear proliferation. “We ask the FATF to remain vigilant with respect to emerging financial technologies that may allow for new methods of illicit financing,” it added.


Greece readies revival of coronavirus-hit economy

Updated 2 min 20 sec ago

Greece readies revival of coronavirus-hit economy

  • Tourism accounts for around 20 percent of Greek gross domestic product
  • Greece desperately needs to attract visitors this year

ATHENS: Greece geared up Thursday to revive its tourism-dependent economy, which shrank in the first quarter owing to measures against the coronavirus, the Elstat data agency said.
Prime Minister Kyriakos Mitsotakis is to headline an event later in the day to unveil a national tourism campaign for the virus-shortened season.
He has already warned the country that the economy would fall into a “deep recession” this year before rebounding in 2021.
Tourism accounts for around 20 percent of Greek gross domestic product (GDP), so it is crucial that visitors be attracted back to the nation’s beaches and iconic island villages.
Toward that end, Greece has announced a ‘bridge phase’ between June 15 and 30, during which airports in Athens and Thessaloniki will receive regular passenger flights.
Other regional and island airports are to open on July 1.
Greece plans to impose a seven- to 14-day quarantine only on travelers from only the hardest-hit areas as identified by the European Union Aviation Safety Agency (EASA).
Sample tests will also be carried out at entry points for epidemiological purposes however.
Provisional data released by Elstat showed how important it is to get the tourism sector back on its feet.
GDP fell by 1.6 percent in the first quarter of 2020 compared with the previous three months, and by 0.9 percent year-on-year, the data showed.
But data for March alone showed that month was not as bad as expected, government spokesman Stelios Petsas told a press conference.
Now, “Greece is opening its gates to the world under safe conditions for tourism workers, for residents of tourism destinations and of course, for our visitors,” he said.
With fewer than 180 coronavirus deaths among 11 million residents, Greece seeks to market itself as a healthy holiday destination.
On Tuesday, Athens said it was suspending flights to and from Qatar until June 15 after 12 people on a flight from Doha tested positive for COVID-19.
Earlier Thursday, Greek media reported that a first batch of nearly 190 tests among residents of the Cycladic islands, one of Greece’s most popular destinations, had turned up negative.
The country desperately needs to attract visitors this year.
The latest finance ministry estimate suggests that for 2020 as a whole, business activity could drop by up to 13 percent from the level in 2019.
Between 2009 and 2018, Greece suffered its worst economic crisis in modern times, and had begun to slowly regain some of the lost ground before it was hit by the impact of coronavirus restrictions.
The country was shut down for six weeks, and the International Monetary Fund forecast in May that GDP would decline by 10 percent this year before growing by 5.5 percent in 2021.