Yellen: "Corona Variants Threaten Economic Recovery"

U.S. Treasury Secretary Janet Yellen is answering questions from the press after the G20 Finance Ministers and Central Bank Governors meeting held on the 11th (local time).

[Asia Economy Reporter Choi Dae-yeol] Janet Yellen, U.S. Treasury Secretary, said on the 11th (local time), "We are very concerned about the Delta variant and other variants that could threaten the (economic) recovery."

According to major foreign media, Secretary Yellen made these remarks after meeting with reporters following the G20 Finance Ministers and Central Bank Governors meeting held in Italy that day. In some countries that started vaccinations early, even though vaccinations have reached levels sufficient for herd immunity, the Delta variant, one of the COVID-19 variants, is spreading again, showing worrying signs.

There had been expectations that the economy would fully recover around the end of this year, especially in major countries, as vaccinations increased. However, the resurgence of COVID-19 due to variants has changed the outlook. Secretary Yellen said that the first issue discussed by the G20 economic leaders was ending COVID-19, emphasizing that countries around the world are closely connected today.

He stated, "We recognize the importance of cooperation to accelerate vaccinations and have a goal of vaccinating 70% of the world's population by next year," urging G20 countries to strengthen support for vaccine distribution to low- and middle-income countries where vaccine supply is insufficient.

During the two-day meeting, the G20 economic leaders received a report from an expert panel stating that if another pandemic occurs after COVID-19, world governments will need to spend at least $75 billion over five years to prepare for or combat it. To discuss immediate actions, they formed a task force (TF) including the World Trade Organization, International Monetary Fund, World Bank, and World Health Organization, and agreed to receive regular monthly reports, he added.

Additionally, the G20 economic leaders approved a tax reform plan at this meeting, which mainly includes setting a global minimum corporate tax rate and imposing a digital tax that changes the allocation of taxing rights to prevent tax avoidance by global companies.