Ryad (AFP)
The Saudi king on Thursday called on G20 member countries for an "effective and coordinated response" to deal with the pandemic of the new coronavirus, by opening a virtual emergency summit of the world's largest economic powers.
The American presidents Donald Trump, Russian Vladimir Poutine, French Emmanuel Macron and the other leaders of the G20 are meeting Thursday in videoconference to try to coordinate their efforts against the threat of unprecedented recession posed by the new coronavirus.
The discussions take place as the global toll of the Covid-19 pandemic has exceeded 21,000 dead and locked up in their homes in an unprecedented way more than three billion people. The meeting also comes at a time when the great powers are working to mitigate the effects of the virus on their economies.
"We must provide an effective and coordinated response to this pandemic and restore confidence in the global economy," said King Salman of Saudi Arabia, head of the G20 this year, in a speech.
"Despite the importance of the individual responses of each country, it is our duty to strengthen cooperation and coordination in all aspects of the economic policies adopted," he insisted.
On Wednesday, the financial rating agency Moody's warned that the G20 economies as a whole should be in recession this year due to the pandemic.
Overall, these countries are expected to contract by 0.5% of their gross domestic product (GDP). In the United States, this drop will be 2% and in the euro zone by 2.2% (1.4% in France).
- "Unprecedented shock" -
"The G20 economies will suffer an unprecedented shock in the first half of the year and will contract over the whole year before rebounding in 2021," said the agency, which figures this recovery next year. at 3.2% on average.
While the rich countries, including the United States, Germany and Saudi Arabia, have unveiled colossal recovery plans, the G20 has so far presented no collective action program, and the concerns s 'intensify for poor countries that do not have access to capital markets and adequate health services.
"It is our responsibility to reach out to developing countries (...) by enabling them to build their capacities and improve their infrastructure so that they overcome this crisis and its repercussions," said the Saudi king.
Tedros Adhanom Ghebreyesus, head of the World Health Organization (WHO), urged the G20 to offer its support to "low and middle income countries", especially in sub-Saharan Africa.
The International Monetary Fund (IMF) and the World Bank (WB) have called on the G20 to suspend payment of the debts of the poorest countries.
- "Absent subscribers" -
With world leaders divided, Thursday's meeting contrasts a priori with the G20 summits following the 2008 financial crisis, which saw the group mobilize to come to the aid of vulnerable countries.
"The G20 is today with absent subscribers, unlike 2008," said Ian Bremmer, president and founder of the Eurasia group.
On Wednesday, US Secretary of State Mike Pompeo targeted China, saying that the G7 of the most industrialized countries had seen China's "intentional disinformation campaign" about the new coronavirus.
"The Chinese Communist Party poses a significant threat to our health and our way of life, as the epidemic has clearly demonstrated," he added at a press conference in Washington after a virtual meeting with its G7 counterparts (Germany, France, United Kingdom, Italy, Canada and Japan).
"If G20 leaders can put politics aside and reach a collective agreement, countries will have a better chance of succeeding and / or providing more stimulus" to the economy, Markus told AFP Engels, from the Global Solutions Initiative.
"Coordination among G20 members sends a strong message of unity and trust, two elements that are urgently needed."
Oil prices, depressed by the impact of the epidemic on demand as well as the price war between Ryad and Moscow, should also be at the center of the discussions.
The Saudis have engaged in the sharpest price cuts in two decades in retaliation for Russia's refusal to reduce supply as the virus drives demand down.
On Wednesday, Pompeo urged Crown Prince Mohammed bin Salman to "rise to the challenge" and "reassure the markets".
Leaders from other countries affected by the pandemic, including Spain, Jordan, Singapore and Switzerland, are participating in the G20 summit, as well as representatives from the United Nations, the World Bank, WHO and the WTO.
© 2020 AFP