G20 to warn of risks of coronavirus variants amid ‘great divergences’ in global economic recovery
- A Group of 20 draft statement indicates policymakers are not ready to give the all-clear signal on the pandemic due to Delta and other variants
- The statement also includes a pledge ‘to use all available policy tools for as long as required to address the adverse consequences of Covid-19’
Finance ministers and central bankers from the world’s biggest economies plan to warn of persistent risks to global growth from coronavirus variants even as the overall outlook brightens, according to a draft communique seen by Bloomberg News.
Since April, “the global outlook has further improved, mainly due to the roll-out of vaccines and continued policy support”, according to a draft of the Group of 20’s statement, scheduled to be released on Saturday in Venice, where policymakers are meeting.
“However, the recovery is characterised by great divergences across and within countries and remains exposed to downside risks, in particular the spread of new variants of the Covid-19 virus and different paces of vaccination.”
The document, which may be subject to revision, indicates policymakers are far from ready to give the all-clear signal on the pandemic, with the Delta variant causing a resurgence in Covid-19 cases in many nations.
While the United States and Europe are enjoying strong recoveries as vaccinations spread, other places are lagging behind and suffering, such as India and South Africa.
The draft statement includes a pledge, similar to the group’s prior communique in April, “to use all available policy tools for as long as required to address the adverse consequences of Covid-19” and to avoid any “premature withdrawal of support measures”.
