The leaders of the G7, the most industrialized and wealthiest countries in the world, reiterated their commitment on Tuesday to do “everything necessary” to restore confidence and economic growth “in the face of the magnitude of the coronavirus crisis.
“We will do everything necessary to restore confidence and economic growth and protect jobs, companies and the resistance of the financial system,” the G7 countries said in a statement at the end of a virtual meeting of their economy ministers and bank governors. central.
The widespread stoppage of activity due to the international expansion of the coronavirus threatens to lead to a recession in the global economy, with the loss of millions of jobs and the bankruptcy of companies around the world and, to counteract it, the main central banks have led carried out massive injections of liquidity and the state authorities have launched huge fiscal stimulus plans.
The group stressed that it will offer “the necessary fiscal effort to help economies recover quickly” as well as continue with monetary stimulus measures.
“We promise to maintain expansionary monetary policies for as long as necessary and are ready to take further action, using the full range of instruments consistent with our mandates,” the note added.
In the United States, the Federal Reserve drastically cut interest rates to between 0% and 2.25% and announced an unlimited Treasury bond purchase program; while in Congress, lawmakers are finalizing a $ 2 trillion fiscal stimulus package to keep the economy afloat.
In the European Union, the European Central Bank has also removed all monetary artillery with a multibillion-dollar debt purchase program and the demands for controlling the fiscal deficit due to the economic impact of the coronavirus have been eliminated.
The G7 is made up of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States, which occupies the current presidency this year.
The number of global cases of coronavirus causing COVID-19 amounts to 334,981, while deaths total 14,652 since the start of an epidemic that started in China in January and has become a pandemic, according to the latest data from the Organization. World Health (WHO).
China remains the most affected country, with 81,600 infections, with 39 imported cases from countries that have become the focus of the pandemic and none of local transmission in the last day; followed by Italy, the United States and Spain.