Finance chiefs and central bankers from the world’s largest economies say they see downside risks to global growth persisting as the coronoavirus raises uncertainty and disrupts supply chains.
While delegates at the Group of 20 meeting in Riyadh, Saudi Arabia, spent much of their time talking about a response to the outbreak that originated in China, their final communique didn’t once mention the epidemic. And although it said the participants agreed on a “menu of policy options” to counter the emergency, the statement included scant details.
The G-20 countries “agreed to be ready to intervene with the necessary policies related to these risks,” Saudi Finance Minister Mohammad Al Jadaan said Sunday in remarks concluding the meetings at the Ritz Carlton Hotel in the Saudi capital. “Global economic growth is continuing but remains slow and downside risk persists, including those arising from geopolitical, remaining trade tensions, as well as policy uncertainty.”
International Monetary Fund Managing Director Kristalina Georgieva said Saturday the outbreak had led the lender to cut its forecast for Chinese growth to 5.6% from 6% and to trim 0.1 percentage points from its global growth forecast, but that it’s also looking at more “dire” scenarios.
The final communique didn’t include any breakthroughs on efforts to introduce a global minimum tax or a tax system for multinational tech giants like Alphabet Inc.’s Google and Facebook Inc., according to the people.