Coronavirus: G7 pledges to continue fiscal expansion for ‘as long as needed’
Finance ministers and central bankers from the G7 countries have pledged to expand fiscal and monetary actions for “as long as needed” to restore global economic growth and confidence pummeled by the coronavirus.
“We will do whatever is necessary to restore confidence and economic growth and to protect jobs, businesses, and the resilience of the financial system. We also pledge to promote global trade and investment to underpin prosperity,” the group said in a statement issued following a call today.
The group also pledged to “maintain expansionary policies for as long as needed” and stand ready to take further action “using the full range of instruments consistent with our mandates”.
They added that G7 finance ministers would coordinate on a weekly basis to implement their response to the coronavirus pandemic.
The statement comes as new economic data show that business activity across the world collapsed at a record pace in March, as measures to limit the spread of the virus hammer the global economy.
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IHS Markit’s flash composite Purchasing Managers’ Index (PMI) showed that the coronavirus crisis hit the UK economy harder than the financial crisis, while the reading for the eurozone plunged to a record low.
PMI surveys from Japan and Australia also showed a severe contraction in activity.
Governments and central banks around the world have rushed to introduce wide-ranging stimulus measures in a bid to limit the economic shock caused by coronavirus.
Last week, G7 leaders pledged to do “whatever is necessary” to fight the pandemic using all policy tools available to them.