Ryad (AFP)

Finance ministers and central bank governors of G20 countries begin a two-day meeting in Riyadh on Saturday on the state of the world economy and the fallout from the new coronavirus epidemic.

In addition to an action plan to protect the global economy from the impact of the epidemic, financial leaders from the world's top 20 economies are expected to discuss ways to achieve a fairer global digital tax system.

"Finance ministers and central bank governors will discuss the global economic outlook and possible policy responses to support growth and hedge against the risks of recession," the organizers said in a statement.

"They will also examine the priorities of the Saudi G20 presidency (...) including the fiscal challenges arising from the digitization of the economy," it added in the press release. A ministerial-level symposium started on Saturday morning on these issues. The ministers are then to meet in camera in the afternoon.

The meeting in Saudi Arabia, the first Arab nation to assume the presidency of the G20, will be chaired by the kingdom's finance minister, Mohammed al-Jadaan, and the central bank governor, Ahmed al-Kholifey.

It takes place as concern grows over the new coronavirus that has prompted Chinese authorities to isolate millions of people to prevent its spread, which has major repercussions on the world economy.

The impact of the epidemic, which has left more than 2,300 dead, could be short-lived, but it comes at a time when the state of the world economy is "fragile", said the director of the Fund International Monetary Fund (IMF), Kristalina Georgieva, at a meeting in Riyadh on Friday.

Georgieva said the IMF is expecting a sharp decline in activity in China followed by a rapid recovery, but warned that the situation could worsen and have more dire consequences for other countries.

Beijing has decided not to send officials to the Riyadh meeting where it is represented by the Chinese ambassador to Saudi Arabia.

"We are closely monitoring the evolution of the virus and assessing its potential effects on economic growth," a senior US Treasury official told reporters.

Saudi Arabia, which succeeded Japan as head of the G20, will host a summit of group leaders on November 21 and 22.

Human rights groups have urged G20 member states to put pressure on the kingdom, which has intensified the crackdown on dissent, imprisoning activists, journalists and opponents.

© 2020 AFP