G-20: Global economic recovery threatened by new coronavirus

The G-20 has warned that the new crown variant virus and the shortage of new crown vaccines in developing countries are posing a threat to global economic recovery.

Finance ministers of member countries who are attending the Group of 20 (G-20) meeting in Venice, Italy, issued a final communiqué and issued the warning on Saturday (July 10).

The communiqué said that the global economic outlook has improved compared to April due to the introduction of the new crown vaccine and various comprehensive programs of economic support, but the rapid spread of new crown variants such as Delta puts the global economic recovery at risk.

The communiqué said, “The economic recovery is highly variable across countries and continues to face downside risks, especially with the threat of the spread of new crown variant viruses and the varying pace of vaccination.”

The communiqué said, “We reaffirm our determination to use all policy tools at our disposal to address the adverse consequences of neo-coronavirus for as long as needed.” The communiqué also said that these policy tools should be consistent with the need to maintain price stability and public finances.

The communiqué emphasized support for “global equitable sharing” of vaccines, but did not propose specific policy measures. The communiqué endorsed proposals by the International Monetary Fund, the World Bank, the World Health Organization and the World Trade Organization to provide $50 billion in new funding for vaccines.

“We have to improve our vaccine (vaccination) performance all over the world,” French Finance Minister Bruno Le Maire told reporters, “We have a very good economic forecast for the G-20, and the only obstacle on the way to a fast and solid economic rebound is a new wave (of virus) risk.”

There are now more concerns that the rapid spread of the Delta New Corona variant of the virus could affect the global economic recovery, especially in countries with low rates of New Corona vaccination.

Kristalina Georgieva, president of the International Monetary Fund, said that the world is facing a “worsening two-track recovery” due to, among other things, differences in the number of new crown vaccines available.

The communiqué also expressed support for a 15% global minimum corporate tax rate, paving the way for G-20 leaders to reach a final agreement on this during their summit in Rome, Italy, in October this year.