G20 Finance Ministers Support 'Digital Tax Agreement'... Hong Says "Expansionary Fiscal Policy to Continue for the Time Being"

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, who is visiting Washington, USA to attend the G20 Finance Ministers and Central Bank Governors Meeting, is giving a special correspondent interview in front of the International Monetary Fund (IMF) on the 13th (local time). 2021.10.14
[Photo by Yonhap News]

[Washington D.C. (USA) = Asia Economy Reporter Son Seon-hee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated on the 13th (local time) that "it is necessary to continue expansionary macroeconomic policies for the time being, followed by an orderly normalization."

According to the Ministry of Economy and Finance, Deputy Prime Minister Hong made these remarks while attending the G20 Finance Ministers' Meeting held in Washington D.C., USA.

This G20 Finance Ministers' Meeting was held for the first time in about two years since October 2019, with approximately 80% of participants attending in person. The meeting discussed major global economic issues including ▲assessment of global economic risks and policy coordination ▲responses to the pandemic and climate change, and support measures for vulnerable countries ▲cross-border payments and other financial issues ▲smooth implementation of the digital tax agreement (proposal).

In particular, member countries shared the recognition that uncertainties are increasing due to uneven recovery between advanced and developing countries, the spread of variant viruses, global supply chain disruptions, and inflation. They reached a consensus to avoid a "premature shift in macroeconomic policy stance." This aligns with Deputy Prime Minister Hong’s remarks that the "expansionary fiscal stance" should be maintained for the time being. Additionally, they agreed to strengthen efforts for equitable vaccine distribution and the restoration of an open and fair trade system.

Along with this, they supported the agreement on key issues of the "digital tax" agreed upon at the OECD-G20 Inclusive Framework (IF) on the 8th and urged the prompt establishment of related follow-up procedures.

Deputy Prime Minister Hong emphasized, "We welcome the digital tax agreement and rapid follow-up actions are required, such as establishing a sophisticated framework for implementing the agreement including multilateral conventions and model rules to ensure swift enforcement and policy effectiveness. Issues requiring further discussion should be addressed promptly, while fully considering industry characteristics and individual country conditions during the process."

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