G20 nations rose to challenge in face of unprecedented health and economic crises, Al Falih says

Saudi Arabia's investment minister praises response to the pandemic from the world's biggest economies

Saudi Minister of Investment Khalid Al Falih talks to reporters during a media briefing ahead of the virtual G20 summit at the International Media Centre in Riyadh. AFP

The world's 20 biggest economies rose to the challenge to limit the effects of an unprecedented health and economic crisis this year, Saudi Arabia's investment minister said.

“The G20 and its presidency was called on to do something that has never been done, which is basically to save the world and to mitigate the effect of these crises going on concurrently,” Khalid Al Falih told a G20 media briefing on Saturday. “The entire group ... I have to give credit to every member of the G20 for rising to the challenge.”

The G20 leadership is meeting on Saturday and Sunday under Saudi Arabia's presidency. The two-day summit, held under the theme of Realising Opportunities of the 21st Century for All, is taking place online as the Covid-19 health crisis and the its economic reverberations continue.

The summit is the climax of an “extraordinary year for the G20”, whose members account for about 85 per cent of the world’s gross domestic product, Mr Al Falih said. At the beginning of the year, trade tensions were rising and countries were concerned that the long run of economic expansion could come to an end.

Saudi King Salman gives a virtual speech during an opening session of the 15th annual G20 Leaders' Summit in Riyadh. Saudi Royal Court HO via REUTERS

Saudi Foreign Minister Adel al-Jubeir (C-L) addresses G20 panel labelled “G20 to reconnect the world” with UAE's Minister of State for International Cooperation Reem al-Hashimy attending virtually , at the International Media Centre in Riyadh. AFP

Saudi Foreign Minister Adel al-Jubeir addresses G20 panel labelled “G20 to reconnect the world” with UAE's Minister of State for International Cooperation Reem al-Hashimy attending virtually, at the International Media Centre in Riyadh. AFP

Saudi Foreign Minister Adel al-Jubeir addresses a panel labelled “G20 to reconnect the world” during the virtual G20 summit at the International Media Centre in Riyadh. AFP

A family photo of G20 Leaders is projected at the historic site of al-Tarif in Diriyah district, on the outskirts of Saudi capital Riyadh, ahead of G20 virtual summit. Saudi Arabia hosts the G20 summit Saturday in a first for an Arab nation, with the downsized virtual forum dominated by efforts to tackle a resurgent coronavirus pandemic and crippling economic crisis. AFP

A picture of Saudi King Salman bin Abdulaziz (R) and his son Crown Prince Mohammed bin Salman is projected at the historic site of al-Tarif in Diriyah district, on the outskirts of Saudi capital Riyadh. Saudi Arabia hosts the G20 summit on November 21 in a first for an Arab nation, with the downsized virtual forum dominated by efforts to tackle a resurgent coronavirus pandemic and crippling economic crisis. AFP

The G20 logo is projected at the historic site of al-Tarif in Diriyah district, on the outskirts of Saudi capital Riyadh. Saudi Arabia hosts the G20 summit on November 21 in a first for an Arab nation, with the downsized virtual forum dominated by efforts to tackle a resurgent coronavirus pandemic and crippling economic crisis. AFP

The G20 logo is projected at the historic site of al-Tarif in Diriyah district, on the outskirts of Saudi capital Riyadh. Saudi Arabia hosts the G20 summit on November 21 in a first for an Arab nation, with the downsized virtual forum dominated by efforts to tackle a resurgent coronavirus pandemic and crippling economic crisis. AFP

"Family Photo" for annual G20 Summit World Leaders is projected onto Salwa Palace in At-Turaif, one of Saudi Arabia?s UNESCO World Heritage sites, in Diriyah, Saudi Arabia. REUTERS

Display of digital historic show is projected during the welcome ceremony for the annual G20 Summit World Leaders onto Salwa Palace in At-Turaif, one of Saudi Arabia?s UNESCO World Heritage sites, in Diriyah, Saudi Arabia. REUTERS

Display of digital historic show is projected during the welcome ceremony for the annual G20 Summit World Leaders onto Salwa Palace in At-Turaif, one of Saudi Arabia?s UNESCO World Heritage sites, in Diriyah, Saudi Arabia. REUTERS

A picture of Saudi King Salman bin Abdulaziz (R) and his son Crown Prince Mohammed bin Salman is projected at the historical site of al-Tarif in Diriyah district, on the outskirts of Saudi capital Riyadh. Saudi Arabia hosts the G20 summit on November 21 in a first for an Arab nation, with the downsized virtual forum dominated by efforts to tackle a resurgent coronavirus pandemic and crippling economic crisis. AFP

An animation is projected at the historical site of al-Tarif in Diriyah district, on the outskirts of Saudi capital Riyadh. Saudi Arabia hosts the G20 summit on November 21 in a first for an Arab nation, with the downsized virtual forum dominated by efforts to tackle a resurgent coronavirus pandemic and crippling economic crisis. AFP

United Nation Secretary General, Antonio Guterres, conducts virtual press briefing from his office in New York ahead of the annual G20 Summit World Leaders to take place in Riyadh, Saudi Arabia. REUTERS

The pandemic pushed the world into “unprecedented territory”, the minister said. Economies around the world witnessed declines not seen since the Great Depression of the 1930s but joint efforts by the group softened the blow.

“We are now seeing that the global economy is contracting less than anticipated in recent months,” he said.

The anticipated contraction in the world’s advanced economies has been 2 per cent smaller than the International Monetary Fund projected in June, which shows how cooperation and multilateral efforts have paid off, Mr Al Falih said.

“The leader summit in March had a very decisive impact on how the year unfolded,” he added.

Since March, governments have rolled out nearly $12 trillion in fiscal stimulus, supported by about $7.5tn in monetary action taken by central banks. These measures have helped shore up the world's banking system and safeguard financial markets.

Covid-19 has infected about 58 million people and killed over 1.38 million, data from Worldometer shows. The International Monetary Fund expects global output to shrink 4.4 per cent this year and recover only modestly in 2021.

Mr Al Falih said the crisis is still not over and the “G20 is not complacent”.

The financial and economic track of the G20 – which helped shape policy responses through meetings of the group's finance ministers and central bank governors – proved important, he said.

Debt relief for needy countries has also been "a focus of the G20 and the presidency”, he said.

In April, G20 members agreed a Debt Service Suspension Initiative aimed at helping the world's poorest countries. G20 nations agreed to a time-bound suspension of debt repayments from 44 countries, making $14bn in funds available for fighting the pandemic.

Earlier this month, G20 finance ministers and central bank governors agreed on a new joint framework to restructure government debt owed by these nations.

The trade and investment track of the organisation has also helped to revive economic activity as the group has pushed for free trade and the continued flow of critical healthcare and agricultural products through ministerial meetings.

The World Trade Organisation now reports that 12 of the G20 countries have “actually reduced trade barriers and tariffs” that existed  before the pandemic, Mr Al Falih said.