Maintaining recovery and promoting growth of global economy

Monday, 2021-07-12 09:24:38
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General view of the the third G20 Finance Ministers and Central Bank Governors Meeting in Venice, Italy on July 9-10. (Photo: g20.org)
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NDO – The international community is aiming towards the common goal of maintaining recovery and promoting economic growth, with the role of rich countries and financial institutions being upheld.

By developing long-term strategies to accompany the transition towards greener and more digital economies and societies, many countries are trying to achieve ambitious goals, but it has been warned that the uneven recovery could pose potential risks to the global economy.

Within the framework of priorities of the Italian G20 Presidency, the recent Third G20 Finance Ministers and Central Bank Governors Meeting, themed “People, Planet, Prosperity”, focused discussions on issues related to global economy and health, as well as the efforts to promote more sustainable recovery and growth. The conference in Venice touched upon the links between the digital revolution and productivity, support for the most vulnerable countries, financial sector issues, and funding for the green transition.

G20 finance ministers are working closely with the International Monetary Fund (IMF), the Financial Stability Council, and the Organisation for Economic Cooperation and Development (OECD) to address issues related to international economic cooperation, thus ensuring global financial stability and reducing risks.

The closer “handshake” between the G20 and financial and economic institutions takes place in the context of the world’s economic recovery being threatened by the increase of new COVID-19 variants and difficulties in vaccine access in developing countries. Although the global economic outlook has improved significantly thanks to vaccination rollouts and economic stimulus packages, it remains very fragile as the world is faced with new strains of coronavirus, especially the Delta variant. The G20 affirmed its determination to use all available policy tools when necessary to deal with the adverse consequences of the pandemic.

IMF Managing Director Kristalina Georgieva warned that the uneven recovery between developed and developing countries is threatening the coherence in economic growth, as well as global stability and security. While the rapid growth of rich countries such as the US and the Eurozone nations is good news, the growth rates of developing countries, especially in Africa and Latin America, are being held back due to the slow progress in COVID-19 vaccination.

The IMF head called on rich countries to take stronger action in vaccine sharing so that they can share the economic “burden” with poorer countries, thus helping to reduce risks to the global economy.