G-20 Says Global Recovery Subject to ‘Elevated Downside Risks’

The world’s richest economies are set to warn that there’s still a big risk the recovery from this year’s virus-led recession could be derailed.

New restrictions in multiple countries to contain the pandemic have hit economic activity, and forced governments and central banks to step up stimulus again. While the curbs are less severe than during the initial wave, they increase the chance of some economies being dragged back into recession.

“The recovery is uneven, highly uncertain and subject to elevated downside risks, including those arising from renewed virus outbreaks in some economies,” the Group of 20 counties said in a draft communique seen by Bloomberg.

The final wording could still change after a discussion among leaders, who will attend a virtual meeting hosted by Saudi Arabia this week.

The document also signaled that governments don’t plan to pull back on support for their economies as long as the threat to businesses and workers remains.

“We are determined to continue to use all available policy tools as long as required to safeguard people’s lives, jobs and incomes, support the global economic recovery, and enhance the resilience of the financial system,” they said.

©2020 Bloomberg L.P.

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