Mnuchin Says G-7 Leaders Vow ‘Whatever Is Necessary’ on Virus

(Bloomberg) -- U.S. Treasury Secretary Steven Mnuchin hosted a call with Group of Seven counterparts and central bankers on Tuesday as world leaders try to stave off a global recession from the coronavirus outbreak, which has shut economies down.

“We will do whatever is necessary to restore confidence and economic growth and to protect jobs, businesses, and the resilience of the financial system,” the Treasury Department said in a statement released early Tuesday.

The impact of the outbreak on supply chains and consumer demand will likely push the global economy into recession this year. Governments across the world have taken action to slow the spread of the pandemic, including strict nationwide lockdowns.

While global financial markets today are “in a better position to withstand shocks,” the G-7 statement said the group will “stay vigilant” to ensure the system continues to function.

Global recession

The International Monetary Fund said it expects a worldwide recession this year that will be at least as severe as the downturn during the financial crisis more than a decade ago, followed by a recovery in 2021.

Nearly 80 countries have asked the Washington-based IMF for emergency finance. It’s working closely with other international financial institutions to provide a strong coordinated response, and has reiterated that it’s ready to deploy all of its $1 trillion lending capacity.

Mnuchin’s call on Tuesday follows the G-20 officials convening an emergency call a day earlier to discuss the global economic fallout from the pandemic and work toward a joint response. Also Monday the Federal Reserve unveiled a sweeping series of measures including for households and employers that push it deeper into uncharted territory.

©2020 Bloomberg L.P.