G20 "COVID-19 Requires Active Fiscal Role... Cooperation for Post-COVID Response"

[Asia Economy Reporter Jang Sehee] The finance ministers of the Group of Twenty (G20) agreed to actively respond to the quarantine and economic crises and to continue playing an active role in fiscal policy. They also agreed to cooperate in responding to the era of the novel coronavirus disease (COVID-19).

At the '3rd G20 Finance Ministers and Central Bank Governors Meeting' held via video conference on the 18th, the G20 produced a joint communiqu? containing these points.

They agreed to continue efforts to improve inclusiveness, such as reducing inequality. They also agreed on cooperation to prevent the disruption of global value chains (GVC), which is one of the biggest downside risks to the global economy and could be an obstacle to future economic recovery.

From Korea, Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki participated in the meeting. The points emphasized by Deputy Prime Minister Hong during the first and second sessions of the meeting were reflected in the joint communiqu?.

Deputy Prime Minister Hong stated, "The implementation of thorough and appropriate quarantine measures" and emphasized that "all efforts must be made to enhance economic vitality." He also said, "COVID-19 will accelerate non-face-to-face interactions, digitalization, and the transition to a green economy." He added, "Countries need to respond innovatively to these changes, and Korea is moving swiftly to prepare for the post-COVID era, including promoting the Korean New Deal."

Regarding the introduction of a digital tax, Deputy Prime Minister Hong said, "It is important to come up with a taxation plan based on consensus by the end of the year," and requested, "Please conduct in-depth discussions within the OECD Inclusive Framework (IF) to achieve this."

Meanwhile, Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), forecasted that the global economy this year will worsen more than initially expected due to the prolonged COVID-19 pandemic. She cited uncertainties in the pandemic's progression and the retreat of multilateralism as major risk factors. To address these, she emphasized the importance of G20 policy coordination, including easing trade restrictions and expanding financial safety nets.

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