G20 finance heads eye impact of coronavirus outbreak on growth, see modest pickup

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The G20 finance ministers and central bank heads wrapped up their two-day meeting overshadowed by coronavirus outbreak

RIYADH - Finance chiefs of the world’s top 20 economies vowed to monitor the impact of the coronavirus outbreak on global growth and act if needed, as they said loose monetary policy and easing trade tensions would prompt a pick-up in 2020 and 2021.

“Global growth is expected to pick up modestly in 2020 and 2021,” they predicted. “The recovery is supported by the continuation of accommodative financial conditions and some signs of easing trade tensions.” Chinese state television quoted China’s President Xi Jinping as saying on Sunday Beijing would step up policy adjustments to help cushion the blow on the economy from the outbreak.

South Korea raised its infectious disease alert to its highest level on Sunday but the European Union saw “no need to panic” over an outbreak in Italy. The group’s efforts were stalled late last year by last-minute changes demanded by Washington, including a proposed “safe harbor” regime which critics say would let multinationals choose whether to abide by the new set of rules or stick to existing regulations.

 

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