Although global economic activity has picked up since June, there are signs that the recovery may be weakening Uncertainty and risk are high.
According to the information obtained by Bloomberg, the draft G20 communique said: the economic recovery is unbalanced, there are many uncertain factors, and the downside risk is also high, including the risk of re emergence of epidemic in some economies. We are determined to continue to use all available policy tools to protect peoples lives, jobs and incomes, support the global economic recovery and enhance the resilience of the financial system.
The final wording may change after the video summit, the report said.
The International Monetary Fund urged governments and central banks not to withdraw policy support too early. The Federal Reserve and the European Central Bank will debate further stimulus measures as early as next month, despite growing belief that a vaccine is coming soon.
Lack of economic power
The recovery is losing momentum, and in this context, our first message to leaders is: dont remove support for the economy prematurely, Georgieva said in a panel discussion at the blogs innovation economy forum. Its very important that we dont back out of this health crisis.
In a blog post on the 19th, Georgieva said that some economies have room to provide more financial support beyond their existing budgets next year, and warned against cutting off lifelines such as expanding the scope of unemployment benefits.
But US politicians talks about a new round of stimulus seem to be stalled, with some of the previous measures coming to an end. In Europe, huge recovery funds are at risk because of the differences in terms of conditions.
The International Monetary Fund warned last month that unless the epidemic is brought under control, the world economy will still face an unbalanced recovery.
When the group of 20 countries reported on the outbreak, it was encouraged to invest in infrastructure. She said there would be huge economic benefits, and if countries acted alone, they would need to spend two-thirds more to achieve the same effect.
The photo, taken in Washington, D.C., on October 14, shows that the head of the International Monetary Fund (IMF) is attending a press conference live on television. Xinhua news agency source: Reference News Editor: Wang Xiaowu_ NF
The photo, taken in Washington, D.C., on October 14, shows that the head of the International Monetary Fund (IMF) is attending a press conference live on television. Xinhua News Agency