NEW YORK - A global recession due to the coronavirus disease (Covid-19) pandemic “is a near certainty” while current national responses to the outbreak “will not address the global scale and complexity of the crisis”, says United Nations Secretary-General Antonio Guterres.
“This is a moment that demands coordinated, decisive, and innovative policy action from the world’s leading economies. We are in an unprecedented situation and the normal rules no longer apply,” said Mr Guterres in a video conference on Thursday (19/3) as quoted by Reuters.
“A global recession—perhaps of record dimensions—is a near certainty.”
So far there have been nearly 219,000 infections worldwide and over 8,900 deaths, with Europe being the current epicentre of the pandemic while the number of cases continues to wane in China where the outbreak first sparked.
In the video conference Mr Guterres also called on countries to increase spending on public health and assist less-prepared nations in handling the pandemic, including by supporting the World Health Organization’s (WHO) efforts.
“A wealthy country must not be convinced that it has only to deal with its own citizens. It’s in the interests of a wealthy country to contribute to a global response because the crisis can come from wherever, at any moment,” he said.
Mr Guterres added that he would take part in the emergency G20 summit, scheduled for next week, with a “very strong appeal” to the forum “to have a particular concern with African countries and other countries in the developing world”.
When it comes to the global economy, he said, the liquidity of the financial system must be guaranteed, citing G20 leaders’ measures to protect their citizens and economies by waiving interest payments. “We must apply that same logic to the most vulnerable countries in our global village and alleviate their debt burden,” he concluded. (MS)