G20 Deputy Finance Ministers and Central Bank Deputy Governors Meeting: Emphasizing the Need for Vaccine Supply and Fiscal Support

Considering the COVID-19 Situation... Non-Face-to-Face Meeting on 25-26
Agreement on Structural Reform Efforts Including Digital and Low-Carbon Economy Transition

[Asia Economy Reporter Jang Sehee] The Ministry of Economy and Finance announced on the 27th that it held a non-face-to-face meeting with the G20 Deputy Finance Ministers and Central Bank Deputy Governors to discuss the 2021 work plan and operational measures regarding the global economy and macroeconomic cooperation.

The G20 Deputy Finance Ministers and Central Bank Deputy Governors meeting was held online on the 25th and 26th in consideration of the COVID-19 situation, with Yoon Tae-sik, Director General for International Economic Affairs at the Ministry of Economy and Finance, attending.

This meeting was the first held by Italy, the G20 chair country for next year. They discussed the global economy, macroeconomic cooperation, health, and sustainable finance during the meeting.

While forecasting a recovery trend in the global economy this year, they emphasized the need for rapid and equitable distribution of vaccines to achieve recovery. They also discussed the necessity of fiscal support amid the ongoing COVID-19 situation.

Furthermore, they agreed to strive for structural reforms such as the transition to a digital and low-carbon economy. The United States expressed a changed stance at its first G20 meeting since the inauguration of the Biden administration.

In this meeting, regarding the global economy and macroeconomic cooperation, they emphasized ▲ the importance of multilateralism and revitalizing global trade through the recovery of global value chains (GVCs) ▲ equitable vaccine distribution ▲ transition to a digital and green economy.

They identified issues such as low-income countries’ debt problems, managing capital flow volatility, support for low-income countries, and digital currencies as future tasks. Additionally, they agreed to focus on financial stability and pursue regulatory improvements.

Lastly, Italy proposed strengthening pandemic response capabilities, including expanding health financing, and broadening discussions on climate change issues.

Meanwhile, the G20 plans to specify global policy coordination measures through sectoral working groups and announce them after the G20 Finance Ministers’ meeting.