The impact of COVID-19 on the world economy was the focal point of the virtual meeting of G20 Finance Ministers and Central Bank Governors (FMCBGs), Reuters reported on Friday (Feb. 26).
In the first meeting under the Italian presidency of G20, the financial leaders of the world’s top 20 economies agreed that economic recovery will remain a top priority. They also agreed to work together to find more solutions to assist poorer economies with the effects of the coronavirus.
According to a G20 news post, the leaders are “committed to scaling up international coordination to tackle current global challenges by adopting a stronger multilateral approach and focusing on a set of core priorities.”
Among the top priorities includes ensuring access for all countries to safe vaccines, testing and treatment. The leaders also established an independent panel to address preparedness against future pandemics.
When the FMCBG meets again in April, they will discuss the G20 Action Plan and tackle tough issues like “low productivity growth, rising inequality, climate and environment-related risks, and the infrastructure financing gap.”
The ministers and governors also discussed the pandemic’s impact on financial stability and financial inclusion, the post indicated. They agreed that as a group, they should maintain “close cooperation” and ensure the financial sector can support recovery.
The group also talked about international taxation and “the urgent need” to overhaul the system for globalization and digitalization. The G20 set a goal of mid-2021 to “achieve a global and consensus-based solution.”
Stepping up the implementation of digital payments and other financial services was also discussed as a top priority to ensure financial inclusion of the neediest groups.
The G20 said in March it would infuse the world economy with $5 trillion to fight the devastating effects of the pandemic. The world leaders pledged to do “whatever it takes” to help stave off the negative impacts of COVID-19.
The International Money Fund (IMF) called on G20 leaders in November to continue financial support of their economies to continue fighting the effects of the ongoing COVID-19 pandemic.
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