The finance ministers also discussed updates and the extension of the G20 action plan to support the global economy during the coronavirus pandemic and prolong the G20 initiative to suspend debt service payments for the world's poorest nations. At the same time, the International Monetary Fund (IMF) announced that the international community of states had to find a way to deal with the immense debts of many countries, especially the poor and heavily indebted states that were already strongly affected before the crisis. The debt relief for particularly poor countries, which has so far been running until the end of the year, will be extended by six months by G20 decision. A next decision will be made in 2021 as to whether this measure will be extended again. Until mid next year, the G20 states are also to be given time to clarify a global tax reform. The IMF argues that current tax laws should be adapted to the digital age.
The International Monetary Fund (IMF) is expecting a global economic slump of -4.4% this year due to the coronavirus pandemic. This would be the worst recession since the Great Depression almost 100 years ago. In addition, an estimated USD 28trn in global economic output could be lost over the next five years due to the late effects of the crisis, according to IMF Director Kristalina Georgieva.
A new economic stimulus package to counter the effects of the corona crisis is a long way off in the US. The US Secretary of the Treasury, Steve Mnuchin, said that it is still a long way from an agreement with Nancy Pelosi, the speaker of the House of Representatives. Nevertheless, he said that they would continue to try to find a consensus before the elections. Republicans and Democrats disagree on several points. The biggest point of contention is the size of the aid package. While Pelosi demands a package of USD 2.2trn, the maximum bid of Mnuchin is USD 1.8 trn.
At their meeting today, the leaders of the European Union member states are expected to increase the pressure on Britain in the negotiations on fishing rights, fair competition and dispute settlement. Although the negotiations for future relations between the union and the island state are well advanced, it is difficult to reach agreement on individual points. If no agreement can be reached, Great Britain would probably be treated as a third country in 2021, with corresponding import duties. Meanwhile, the economy continues to hope for planning security.
|14:30||USA||Initial Jobless Claims||840 000|
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