G20 to say economic outlook less negative, vow to sustain, strengthen support if needed

FILE PHOTO: A man on a bicycle rides past containers at an industrial port in Tokyo
FILE PHOTO: A man on a bicycle rides past containers at an industrial port in Tokyo, Japan, May 22, 2019. REUTERS/Kim Kyung-Hoon

October 13, 2020

BRUSSELS (Reuters) – The world’s financial leaders will say on Wednesday that the outlook for the pandemic-ravaged global economy is less negative as steps already taken are paying off, and will vow to do more if needed to support the recovery, their draft statement said.

Finance ministers and central bankers from the world’s 20 biggest economies will hold virtual meeting on Wednesday to discuss the main global economic challenges as the COVID-19 pandemic will cause a global economic contraction this year.

“The outlook is less negative with global economic activity showing signs of recovery as our economies have been gradually reopening and the positive impacts of our significant policy actions started to materialize,” the G20 financial leaders’ draft statement, seen by Reuters, said.

“We will sustain and strengthen as necessary our policy response, considering the different stages of the crisis, to secure a stable and sustainable recovery,” it said.

The G20 financial leaders, who have clashed in the past about the international trade — a key motor of global growth — said they would not set up new barriers to it.

“We will continue to facilitate international trade, investment and to build resilience of supply chains to support growth, productivity, innovation, job creation and development,” the draft said.

(Reporting by Jan Strupczewski)