Mnuchin, US Treasury: "It Will Take 3-4 Weeks to Assess the Economic Impact of COVID-19"

"US-China Phase 2 Trade Negotiations Expected to Be Delayed"

[Asia Economy New York=Correspondent Baek Jong-min] Steven Mnuchin, the U.S. Secretary of the Treasury, expressed that it would take an additional 3 to 4 weeks to predict the economic impact of the novel coronavirus (COVID-19) outbreak. He also mentioned the possibility of delays in the U.S.-China Phase 2 trade agreement.

On the 23rd (local time), Mnuchin gave an interview to CNBC in Riyadh, Saudi Arabia, where the Group of 20 (G20) finance ministers and central bank governors meeting was held. He said, "The virus is spreading quickly, but the fatality rate is quite low. It is too early to say whether this is a very concerning situation," and added, "In 3 to 4 weeks, we will be able to obtain accurate information to understand the economic impact."

He also stated that there would be discussions related to COVID-19 responses at this meeting. However, Mnuchin expressed the view that "for now, it seems manageable, but the situation could change."

Mnuchin raised the possibility that the U.S.-China Phase 2 trade agreement could be delayed. He said, "The approach to Phase 2 (trade agreement) will definitely be somewhat delayed."

This formalizes the possibility that discussions for the Phase 2 trade agreement could be delayed amid concerns about potential delays in China’s purchase of U.S. agricultural products under the Phase 1 trade agreement signed on January 15 last month.

Meanwhile, Mnuchin emphasized the strength of the U.S. economy but predicted that the U.S. economic growth rate this year could be reduced by 0.5 percentage points due to the impact of the COVID-19 outbreak, last year’s General Motors (GM) strike, and the grounding of Boeing 737 Max aircraft.

This content was produced with the assistance of AI translation services.