On Wednesday, the finance ministers of a group of 20 countries promised to implement economic stimulus measures to ensure a recovery from the COVID-19 pandemic.
According to the official communiqué announced after the G20 meeting, “avoid early withdrawal of support measures and continue to maintain recovery” as risks continue.
The global recovery is strong, but the statement states that it is “very different” between countries.
“We reaffirm our determination to use all available tools as long as necessary to address the negative effects of COVID-19, especially those most affected,” the statement continued.
At the same time, authorities are closely watching the rise in prices, the statement said.
Meetings between the Minister of Finance and the Governor of the Central Bank are held when suppliers struggle to meet new demand and bottlenecks are causing a shortage of key materials and pushing up prices.
In particular, oil prices have skyrocketed above $ 80 a barrel for the first time in years.
The World Bank estimates that 8.5% of the world’s container ships are stagnant in or around the port, twice as much as in January.
Italy’s central bank governor, Inhazio Bisco, agreed with the International Monetary Fund and others who said inflationary pressures were primarily the result of temporary factors such as a surge in demand.
But he admitted, “These may take months to disappear.”
The G20 central banker asked whether “more structural factors are at work” in the larger-than-expected inflation surge, and whether there are factors that could be temporary but permanent. I am studying this issue to confirm. I told reporters.
Central bankers are walking the delicate line between helping recovery in easy financial conditions while avoiding a permanent rise in inflation.
“Supply chain issues are felt globally. Financial leaders around the world need to work together to tackle common challenges,” said the UK’s Okura, who chaired the conference of the wealthiest countries in the world. Minister Rishi Sunak said.
The G20 communiqué said the central bank “acts as needed” to deal with price stability “while looking at temporary inflationary pressures.”
However, World Bank Governor David Malpass warned that some of the price surges were “not temporary.”
“It takes the time and cooperation of policy makers around the world to organize them.”
IMF Prime Minister Cristalina Georgieva said delays in vaccination rates to contain pandemics in developing countries contributed to supply constraints: “As long as it expands, it will disrupt the global supply chain. This risk will be higher. ”
G20 pledges to avoid “early withdrawal” of financial support
Source link G20 pledges to avoid “early withdrawal” of financial support