Global response needed to ensure economic recovery from COVID-19 pandemic: Trudeau

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Global response needed to ensure economic recovery from COVID-19 pandemic: Trudeau


OTTAWA – Prime Minister Justin Trudeau calls for a coordinated global response to ensure a smooth economic recovery from the COVID-19 pandemic.
In a virtual meeting hosted by the United Nations, Trudeau said Canada cannot defeat the novel coronavirus and rebuild its economy unless all countries have the resources to recover.

“We need to make sure that at the same time as we focus on (people’s) health, we also focus on the health of the global economy,” Trudeau said.

“It means taking concrete action in leading countries around the world to recognize that it is not only in the global interest but in their own interests to ensure a more equitable global recovery. ”

UN Secretary-General Antonio Guterres said the lack of action to support vulnerable middle-income countries affected by the crisis posed a risk of slipping into the worst recession since the Great Depression.

The effect will be greatest on the poorest people in the most vulnerable countries, but it will also affect people in high-income countries.

“There have been credible forecasts of global production losses in the order of a trillion dollars,” he said.

“We are already in the worst global recession in 90 years. ”

The meeting followed a series of sessions held last year to mobilize economic recovery efforts after the pandemic.

Guterres said the world is on the brink of a debt crisis, with six countries that have already defaulted and a third of emerging market economies are at high risk of a fiscal crisis.

“Many developing countries face funding constraints that prevent them from investing in recovery and resilience, nor from accessing vaccines that provide the fastest way out of the pandemic,” he said. he declares.

He said developing countries urgently need access to additional cash to respond to the pandemic and invest in a sustainable and inclusive recovery.

Trudeau said Canada, along with Jamaica and the United Nations Secretary-General, has led the talks to ensure a more equitable and just economic recovery.

He said countries need access to liquidity to be able to help their citizens and small businesses weather the crisis.

“It is in our own national interest to see countries around the world succeed through (the pandemic), so that we can all get back to the global economy as best we can,” Trudeau said.

He added that some middle-income countries are extremely vulnerable, either to the fallout from this pandemic due to their dependence on tourism, for example, or generally due to the climate change crisis.

“We have to make sure that the international financial institutions are ready to support them. ”

In a new policy brief released on Monday, the Secretary-General said that while many steps taken so far have been important, they have not been enough to help restore economic health.

Risks remain high for more countries to slip into a debt crisis, especially if the COVID-19 shock is more prolonged and deeper than expected.

Guterres said the pandemic has already resulted in more than 2.7 million deaths and more than 125 million confirmed cases of COVID-19 worldwide, moving beyond a health crisis to become a global development emergency.

“Unless we take decisive action on debt and liquidity, we risk another ‘lost decade’ for many developing countries.”

This report by The Canadian Press was first published on March 29, 2021.

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