G7 countries vowed to combat economic pain from coronavirus. But they stopped short of specifics, leaving analysts skeptical.

REUTERS/Kim Kyung-Hoon/Pool

• Finance ministers and central bank governors said Tuesday they would closely monitor the effects of the novel coronavirus on global markets and the economy.
• But they fell short of a specific policy response to the outbreak, leaving analysts skeptical.
• Wall Street capped off its worst week since the financial crisis on Friday as economists warned COVID-19, which has spread to at least 64 countries, would hurt global growth. 
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Finance ministers and central bank governors said Tuesday they would closely monitor the effects of the novel coronavirus on global markets and the economy, but they fell short of a specific policy response to the outbreak. 

In a joint statement, Treasury Secretary Steven Mnuchin and Federal Reserve Chair Jay Powell said the respiratory illness COVID-19 could impact global growth and reaffirmed a commitment among G7 leaders “to use all appropriate policy tools to achieve strong, sustainable growth and safeguard against downside risks.”

“Alongside strengthening efforts to expand health services, G7 finance ministers are ready to take actions, including fiscal measures where appropriate, to aid in the response to the virus and support the economy during this phase,” the statement said.

Global stocks clawed back some of the ground lost last week following the statement, which came after a call among G7 leaders early Tuesday. Wall Street capped off its worst week since the financial crisis on Friday as economists warned COVID-19, which has spread to at least 64 countries, would hurt global growth. 

“The G7 statement falls short of hopes of a coordinated policy response and raises the risk that central banks will disappoint markets’ expectations in the months ahead,” said Jennifer McKeown, the head of global economics at Capital Economics. “This is a disappointment compared to previous hopes of an immediate and coordinated fiscal package and interest rate cuts.”

G7 countries said they welcomed statements from the International Monetary Fund, the World Bank, and other international financial institutions regarding efforts to address human tragedy and economic challenge posed by COVID-19. As of Tuesday morning, the outbreak had killed roughly 3,000 and sickened tens of thousands more.