Rio de Janeiro: G20 financial leaders will say Friday there is a rising likelihood of a global economic “soft landing”, but warn wars and escalating conflicts could endanger this outlook, as per the final draft of a joint communique seen by Reuters.
The statement is set for release as finance ministers and central bankers from the Group of 20 major economies wrap up their second day of meetings in Brazil, which has used its presidency to focus on reducing economic inequalities.
Last month, the World Bank forecast that the global economy would avoid a third consecutive decline in growth since a major post-Covid jump in 2021, with 2024 growth stabilising at 2.6%, in line with 2023, but warned that overall output would remain well below pre-pandemic levels through 2026.
“We are encouraged by the increasing likelihood of a soft landing of the global economy, although multiple challenges remain,” the draft, to be formally adopted later on Friday said. “Downside risks include wars and escalating conflicts.”
By avoiding explicit mention of the wars in Ukraine and Gaza, diplomats have worked to sidestep the disagreements between Russia and major Western nations that derailed a consensus at the finance chiefs’ February meeting. To defuse the disagreement, Brazil drafted a chair statement on geopolitical issues, stressing that these matters will be addressed by G20 leaders in November.
