World13 hours in the past (Nov 21, 2020 02:35PM ET)
© Reuters. FILE PHOTO: Mexico’s President Andres Manuel Lopez Obrador gestures throughout a information convention at National Palace in downtown Mexico City
MEXICO CITY (Reuters) – Mexican President Andres Manuel Lopez Obrador on Saturday urged fellow leaders from the 20 largest world economies (G20) to avoid debt and bailouts within the efforts to deal with the COVID-19 disaster that has brought on a world recession.
From the beginning of the pandemic, which has claimed a minimum of 100,000 lives in Mexico, the federal government has eschewed taking up debt to fund bailouts for companies or money funds for employees – a unique method from many different nations which have sought to cushion the financial blow.
In a report directed at G20 nations this month, the International Monetary Fund (IMF) singled out Mexico together with Brazil, Britain and the United States as nations that ought to improve fiscal assist subsequent 12 months past projected ranges, saying that pulling again might jeopardize restoration.
Within G20, Mexico is the nation with the least fiscal assist spending as a proportion of gross home product.
“Economic recovery must happen from the bottom up. First help the poor, and don’t focus government actions just on granting public funds to companies or financial institutions in bankruptcy,” Lopez Obrador advised the G20 summit, which is being held nearly.
“Avoid taking on debt and even less so if it’s for the benefit of a few, at the cost of the suffering of many,” he mentioned.
Mexico’s economic system is forecast to shrink virtually 10% in 2020, its deepest annual contraction because the Great Depression.
Lopez Obrador additionally known as on nations to keep away from “authoritative measures” comparable to confinement and curfews, and to have extra belief in individuals to behave responsibly in curbing the unfold of the novel coronavirus.
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