In a draft of the final communiqué of the G20the group’s finance managers expressed growing optimism about the possibility of a soft landing for the world economy, the long-awaited soft landing of the economy.
The document cited a faster-than-anticipated disinflation as one of the risks. Although the text is not final and is subject to intense negotiations in São Paulo, where the G20 meeting is taking place, reflects a relatively positive view of the world economy.
“We note that the probability of a soft landing for the global economy has increased“says the draft statement. It also highlights that risks to the global economic outlook are more balanced, with upside risks including faster-than-expected disinflation.
The declaration addresses various challenges, such as the conflicts in Ukraine and Gaza, which have generated tensions in world politics. The draft mentions “conflicts in many regions of the world” and “geoeconomic tensions” as challenges to be addressed.
What the G20 and the head of the US Treasury said
Regarding the global economic situation, the text indicates that inflation has receded in most economies, attributing it in part to adequate monetary policies, reducing bottlenecks in the supply chain and moderating raw material prices.
US Treasury Secretary Janet Yellen underlined the United States’ role in supporting global growth, noting that “the US path to a soft landing has underpinned global growth”. Although he acknowledged risks, such as conflicts in Ukraine and the Middle East, Yellen did not suggest the need to cut interest rates.
The G20 meeting seeks to address contentious issues, such as the Russian invasion of Ukraine, and prevent them from hampering other issues.
Brazil, as host, promotes an agenda that includes poverty, sustainable development and the reform of global institutions, although It remains unclear to what extent progress will be made amid divisions.. The final communiqué usually sets out the ministers’ agreed vision of the global economy and future challenges.
Source: Ambito
