Finance ministers and heads of central banks of the G20 states have named the reasons for the slow recovery of the global economy from the damage caused by the coronavirus pandemic. Among the obstacles, they cited the emergence of new variants of COVID-19, rising geopolitical tensions and supply disruptions.
“The global economic recovery continues. However, new waves of coronavirus infection and the emergence of new options [вируса] affect the pace of recovery, ”the press service of the US Treasury said in a statement following a meeting in Indonesia (quoted by TASS).
The economic recovery will be “out of sync” due to unequal access to vaccines, the document also says. Potential risks are “supply disruptions, a mismatch between supply and demand, as well as rising prices for raw materials, including energy.”
G20 countries are also monitoring international risks associated with growing geopolitical tensions and macroeconomic and financial vulnerabilities, the document says. The authors of the statement also announced plans to conduct “a more systematic analysis of the macroeconomic risks associated with climate change, as well as the costs and benefits of various transition processes.”
Last spring, the G20 talked about the improvement of the global economy. “G20 members acknowledged that after the recession experienced in 2020, the global economic situation showed signs of improvement. This is due both to the start of vaccination campaigns and to a clear policy to support the economy. However, the recovery is characterized by uncertainty and significant differences both between countries and within them, ”the Italian Ministry of Finance said in a statement following a meeting of the Ministers of Economy and Finance and the heads of central banks of the G20 countries.