G-20 finance chiefs, bankers see downside risks to global economy growth

Finance chiefs and central bankers from the world’s 20 largest economies say they see downside risks to global economic growth persisting and have agreed on a “menu of policy options” amid a viral outbreak that’s disrupted supply chains worldwide.

Delegates at the G-20 meeting in Riyadh, Saudi Arabia, spent much of their time talking about a response to the coronavirus outbreak that originated in China and has so far killed more than 2,300 people and infected about 80,000. Countries such as Japan, and institutions including the OECD, have been pushing for nations with surpluses to spend more to help avert a deeper economic slump.

The countries “agreed to be ready to intervene with the necessary policies related to these risks,” Saudi Finance Minister Mohammad Al Jadaan said Sunday in remarks concluding the meetings at the Ritz Carlton Hotel in the Saudi capital. “Global economic growth is continuing but remains slow and downside risk persists, including those arising from geopolitical, remaining trade tensions, as well as policy uncertainty.”

One of the main addressees of the calls for more spending is Germany. So far, the export-driven country has showed little interest in significantly boosting expenditures, arguing fiscal stimulus can’t bolster foreign demand.

The delegates managed to extract a key concession from the U.S. by including a focus on climate change in the final communique. Jadaan called it a “very important issue” on the Saudi agenda.

The concession came after several days of heated debate, including France finance chief Bruno Le Maire cornering Treasury Secretary Steven Mnuchin late Saturday as the G-20 economic leaders dined, according to two people familiar with the matter.

A Treasury spokeswoman didn’t reply to a request for comment.