On July 18, 2020, under the Saudi G20 Presidency, G20 finance ministers and central bank governors met virtually for discussions focused on the global economic outlook and risks, G20 Action Plan progress, the Debt Service Suspension Initiative, and other agenda and outcome documents. A communiqué was released.
Liu Kun, Minister of Finance, participated in the virtual meeting and made a speech. Zou Jiayi, Vice Minister of Finance, was also present at the meeting.
According to the meeting, global economic activity is expected to contract sharply in 2020 due to the impact of the COVID-19 pandemic. The outlook remains highly uncertain. The G20 is determined to continue to use all available policy tools to safeguard people's lives, jobs and incomes, enhance the resilience of the financial system, and support global economic recovery. Progress has been made in the G20 Action Plan with an updated version to be presented in October 2020. The meeting also endorsed the G20 Menu of Policy Options to Enhance Access to Opportunities for All , the G20 Riyadh InfraTech Agenda and other outcome documents. The meeting welcomed the progress achieved under the Debt Service Suspension Initiative and countries will continue to closely coordinate its implementation. The meeting reaffirmed the commitment to reach a global and consensus-based solution this year to address the tax challenges arising from the digitalization of the economy.
Liu said economic shocks of the pandemic in the world are clearly stronger than at first anticipated and may form long-term impacts on supply chains and jobs. The G20 should continue to implement the G20 Action Plan and adjust policies and measures in a timely manner to better promote the COVID-19 response and economic recovery.
First, it’s necessary to introduce public health measures to curb the spread of the pandemic as soon as possible. Second, efforts are needed to strengthen macroeconomic policy coordination, continue to implement strong and effective fiscal and monetary policies, stabilize employment and aggregate demand, and get global supply chains back on track. Third, international organizations should be encouraged to mobilize new resources and help address the funding needs of developing countries.
Liu also said that due to appropriate policies and measures the pandemic is under effective control in China. Currently, major indicators show economic recovery and steady progress. This year, the Chinese government will give priority to stabilizing employment and ensuring people's livelihoods, resolutely win the battle against poverty, and strive to complete building a moderately prosperous society in all respects. To this end, China will continue to coordinate the COVID-19 response and economic and social development, boost counter-cyclical adjustment efforts, and adopt a more proactive fiscal policy. China is willing to continue to strengthen cooperation with G20 members to implement the Debt Service Suspension Initiative and promote a strong recovery of the global economy.