FEBRUARY 24, 2020 – G-20 FINANCE CHIEFS MET IN SAUDI ARABIA OVER THE WEEKEND
Saturday, the finance chiefs of the world’s top 20 economies met in Riyadh, Saudi Arabia for presentation by the International Monetary Fund (IMF). They will be monitoring the impact of the coronavirus on global growth, and take steps, if needed, to loosen monetary policy and ease trade tensions to mitigate negative effects of the spreading disease.
The group feels global growth will pick up modestly in 2020 and 2021, and the shocks will be short-term. Chinese President Xi Junping said, via television, China will step up policy adjustments to soften the effect on the economy from the virus.
“In our current baseline scenario, announced policies are implemented and China’s economy would return to normal in the second quarter,” IMF Managing Director Kristalina Georgieva said on Saturday.
Economists estimate the Chinese economy is operating at a 40-50% capacity right now, and if that continues, the threat on global growth will rise. However, the US economy seems to be staying on track as we await February data. Manufacturing appears to be improving as unemployment stays near 50-year lows.