TOKYO, Arab News

The G20 Finance Ministers and Central Bank Governors' Meeting will be held on the 22nd and 23rd in Riyadh, the capital of Saudi Arabia. It is expected that the effects of the spread of the new coronavirus pneumonia on the global economy will be discussed. We spoke to two experts on the issue.

Former Treasury Secretary Naoyuki Shinohara

What is the current state of the world economy?

This year it was off the bottom and slightly up. The U.S. economy is solid with three cuts by the US Federal Reserve. The US-China trade dispute has not been settled, but the worst case has come out of the "Phase 1" agreement, and the financial markets have felt good.

There was a new type of pneumonia?

If the bacteriologist doesn't predict when to stop, the economic impact cannot be measured, but it will have a considerable negative impact.

What will be the focus of the G20 Finance Ministers and Central Bank Governors' meetings?

The only new topic is new pneumonia. Let's work to prevent global expansion. Medical and technical support must be made available.

How do you discuss the measures?

Discussions on countermeasures for economic impacts seem a little premature, but they may say, "We will implement fiscal and monetary policies as necessary based on future trends."

Ryutaro Kono, Chief Economist at BNP Paribas Securities

What are the prospects of the Finance Ministers of the 20 countries and regions (G20) and Governors of the Central Bank?

With the US-China trade dispute reaching a "first-stage" agreement, it is certain that the economic impact of new-type pneumonia will be the focus. In addition to evaluating the US-China agreement, it will confirm that any unexpected downturn should take action as much as possible in each country/region.

How do you view the world economy?

Adjustments in the IT field were over in October-December last year and were starting to pick up. Three cuts in US interest rates and China's fiscal and monetary policies have taken effect. However, the effects of the new type of pneumonia will cause the world economy to fall sharply from January to March this year.

Will the effects last longer?

Japan is likely to see negative growth in the January to March quarter, but sees temporary effects on the economy. It is assumed that mid-year (expansion of new pneumonia) will end. Even if the global economy slows down, the United States and China should support monetary easing.