As coronavirus cases continue to climb by alarming levels around the world, the resulting global economic impact continues to multiply. According to G20 business leaders, member countries need to implement urgent reforms in order to alleviate at least some of the negative coronavirus consequences on the global economy in order to save it from falling off of a cliff.
The Business Twenty (B20), which consists of members that represent businesses across G20 countries, released a series of policy recommendations to be presented at the upcoming virtual G20 Summit, which this year is hosted by Saudi Arabia on November 21 and 22. According to B20 chairman Yousef Al-Benyan, the global economy is currently suffering from the worst economic downturn in over a century, which has the potential to significantly disrupt global supply chains and manufacturing sectors if left unattended.
Although the global economy is expected to rebound within the next few years, pre-pandemic geopolitical and trade tensions, as well as increasing inequality will continue to put downward pressure on a swift recovery. The B20 group suggests that G20 member countries need to establish collaborative actions in order to pave a sustainable path towards economic recovery that will focus on reducing gender disparity, empowering people, safeguarding against climate change, as well as creating new frontiers.
The B20 policy statement also stressed that the need for increased investment and trade cooperation will be necessary in order for production growth to begin increasing once again. The B20 members called on G20 leaders to implement supportive measures in favour of open markets, and to abide by the World Trade Organization rulebook in order to ensure that all countries have access to a fair playing field.
The call comes amid the G20’s largest economies, China and the US, being in the middle of a trade war and political conflict. However, the conflict has recently intensified between the two countries, especially in the tech industry, with the US threatening to sanction Chinese companies and ban popular apps.
Information for this briefing was found via the Business Twenty (B20). The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.