NEW DELHI: The G20 warned on Saturday of significant headwinds and “cascading crises” buffeting the global economy, while saying more pain could be on the way.
“Cascading crises have posed challenges to long-term growth,” said the Group of 20 leading economies, who have been meeting in the Indian capital New Delhi.
“With notable tightening in global financial conditions, which could worsen debt vulnerabilities, persistent inflation and geoeconomic tensions, the balance of risks remains tilted to the downside,” it said in a statement.
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Many countries are still recovering from the coronavirus pandemic and drastic commodity price surges triggered by Russia’s invasion of Ukraine, while climate change is affecting some of the poorest countries least able to cope.
“Global economic growth is below its long-run average and remains uneven,” the G20 statement said. “The uncertainty around the outlook remains high.”
US Treasury Secretary Janet Yellen said on Friday before the G20 summit that, while “aware of the risks to global growth”, she had “been surprised by the strength of global growth and how resilient the global economy has proven to be”.
“While there are risks and some countries that have certainly been affected, overall, the global economy has been resilient,” she said.
For Yellen, the “most important negative influence is Russia’s war on Ukraine”.
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