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G20 Riyadh Summit to Expedite Global Economic Recovery to Pre-Pandemic Levels

G20 Riyadh Summit to Expedite Global Economic Recovery to Pre-Pandemic Levels

Wednesday, 25 November, 2020 - 08:30
A billboard bearing the portraits of King Salman bin Abdulaziz (right) and his son, Crown Prince Mohammed bin Salman, is seen on November 18 in Riyadh ahead of the G20 summit. (Getty Images)

Saudi economists predicted that outcomes of the 2020 G20 Riyadh summit would contribute to stimulating recovery for the global economy at a rate of 50%, compared to pre-pandemic levels. Also, the volume of global stock supplies and goods is expected to increase by 18%.

This comes in parallel with forecasts of a 4.9% contraction of the global economy in 2020.

The G20, under Saudi Presidency, has exerted efforts to stimulate economies through suspending debt services until mid-2021 and encouraging the private sector to do the same. Work was also poured into having international financial organizations play greater financing and stimulating roles to strengthen economies, especially in developing and poor countries.

“I expect that results reached at the G20 summit will lead to an increase in global economic growth and a hike in global stocks of supplies and goods by 18% according statistical forecasts issued by the World Trade Organization,” said Mohammed bin Daleem Al-Qahtani, a Professor of International Management at King Faisal University.

He noted that the increase will come in light of a staggering 80% trade recession being recorded when the first wave of the coronavirus pandemic hit.

Al-Qahtani explained that unified G20 stances on climate change coupled with the EU’s staunch support for green and sustainable recovery, and the UN’s Sustainable Development Goals will likely boost the growth of a carbon circular economy and ensure the future of global trade.

The academic also highlighted successes achieved on the matter by the Saudi Presidency at the international forum.

He also anticipated that G20 initiatives undertaken during the Saudi Presidency will help put the global economy on track for recovery, restoring 50% of what was lost during the pandemic.

This coincides with considerable optimism towards an affordable and fairly-priced vaccine soon becoming available on the market. Leaders of G20 countries had also stressed the need to coordinate recovery efforts on an international level.

Dr. Abdul Rahman Baeshen, head of the Al-Shorouk Center for Economic Studies, told Asharq Al-Awsat he expected that the G20 final communique will promote economic growth, protect the world against climate change and revive the circular carbon economy at the onset of 2021.

Baeshan also expressed optimism towards the G20 summit helping in meeting the emergency financing demand of the global health sector with global cooperation ensuring the distribution of rapid testing kits, treatment and safe vaccines.

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