G-20 to inject $5 trillion into global economy to deal with COVID crisis

The G-20 countries on Thursday (March 26) pledged to inject over USD 5 trillion into the global economy in a bid to counteract the social, economic, and financial impact of COVID 19 that has impacted people in at least 170 countries and caused over 21,400 deaths.

Prime Minister Narendra Modi also called for a concrete action plan and urged for reforming the World Health Organisation (WHO), sources said to AFP.

“We are injecting over $5 trillion into the global economy, as part of targeted fiscal policy, economic measures, and guarantee schemes to counteract the social, economic and financial impacts of the pandemic,” the leaders said in a statement after an emergency online summit.

The leaders added that they will continue to conduct bold and large-scale fiscal support and that collective G20 action will amplify its impact, ensure coherence, and harness synergies.

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They said that the magnitude and scope of this response will get the global economy back on its feet and set a strong basis for the protection of jobs and the recovery of growth.

The leaders also asked their finance ministers and central bank governors to coordinate on a regular basis to develop a G20 action plan in response to COVID-19 and work closely with international organizations to swiftly deliver the appropriate international financial assistance.

The statement welcomed the steps taken by the IMF and the WBG (world bank group) to support countries in need using all instruments to the fullest extent as part of a coordinated global response and asked them to regularly update the G20 on the impact of the pandemic, their response and policy recommendations.

“We will continue to address risks of debt vulnerabilities in low-income countries due to the pandemic. We also ask the International Labour Organization (ILO) and the Organisation for Economic Cooperation and Development (OECD) to monitor the pandemic’s impact on employment.”

Saudi Arabia, which currently holds the G20 presidency, chaired the leaders’ extraordinary virtual summit.