In a draft of the G-20’s closing statement at the ongoing meeting in Brazil, finance chiefs express optimism about the global economy, indicating an increasing likelihood of a soft landing. The draft, dated Feb. 23, cites faster-than-expected disinflation as one of the positive risk factors contributing to a more balanced outlook. While recognizing challenges such as conflicts in various regions and geoeconomic tensions, the statement reflects a relatively upbeat view of the world economy, overcoming pandemic impacts, soaring inflation, and a surge in interest rates.
Treasury Secretary Janet Yellen, in a press conference in Sao Paulo, emphasized the role of the United States in underpinning global growth, contributing to the favorable conditions for a soft landing. The draft communique also notes the receding inflation in most economies, attributing it to appropriate monetary policies, supply chain easing, and moderating commodity prices.
The G-20 officials are navigating divisions, especially concerning conflicts in Ukraine and Gaza, with the draft cautiously referring to “conflicts in many regions of the world” without specifying. The language on military conflicts has been a point of contention, reflecting the challenges of addressing economic effects and risks associated with geopolitical tensions.
Ministers are expected to address divisive topics to prevent them from overshadowing other agenda items. The meeting in Sao Paulo covers a broad spectrum, including poverty, sustainable development, and global institution reform, reflecting Brazil’s hosting agenda.
The G-20’s final communique, where ministers outline their consensus view of the world economy and challenges, will provide a comprehensive overview of the meeting’s outcomes, showcasing a collective stance on the global economic landscape.
