Steven Mnuchin: The G-7 will do whatever needed to avoid a global recession

US Treasury Secretary Steven Mnuchin hosted a conversation earlier today with his colleagues and G7 leaders about ways to avoid a possible global recession caused by the spread of the coronavirus pandemic.

“We will do everything we can to restore confidence and economic growth and protect jobs, businesses and the resilience of the financial system”, said the US Treasury in a statement.

The impact of the pandemic on supply chains and consumer demand is likely to push the global economy into recession this year. Governments around the world have taken action to delay the spread of the infection, including putting countries under complete national blockades.

The International Monetary Fund (IMF) has said they expect a global recession this year, which will be at least as severe as the 2008 financial crisis.

Nearly 80 countries have applied to the IMF for emergency funding. The Fund is working closely with other international financial institutions to provide a strong coordinated response and to confirm that it is ready to use its full 1 trillion USD worth of borrowing capacity.

Earlier this week, G20 authorities convened an emergency conference call to discuss the possible global economic crisis of the pandemic and work on a joint response.