As of: February 27, 2024, 3:33 p.m
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The finance ministers and central bank heads of the leading 20 economic nations meet in São Paulo, Brazil.
The prospects for the future do not appear rosy, but they are improving.
São Paulo - The 20 leading industrialized and emerging countries (G20) paint a mixed picture for the global economy.
She has proven to be more resilient than expected.
“But the medium-term outlook for growth remains subdued,” says a draft final statement for the meeting of G20 finance ministers and central bank chiefs this week in São Paulo, Brazil.
Above all, the high level of inequality in the world is cause for concern.
Emerging and developing countries are particularly negatively affected by this.
Internationally coordinated answers are needed to major challenges such as poverty and political tensions.
“Soft landing” is becoming more likely
However, the probability of a “soft landing” for the global economy has increased, according to the G20 states in the three-page paper that was available to the
Reuters
news agency on Tuesday and is still being negotiated.
Growth should stabilize this year.
The International Monetary Fund expects global growth of 3.1 percent in 2024, and 3.2 percent in 2025.
Inflation is on the decline in most countries, the G20 states continued.
The risks for the global economy are more balanced again.
Potential negative risks include escalating conflicts.
It is still unclear whether this directly refers to wars, as a G20 insider said.
A slow decline in inflation could also worsen financing conditions for companies and lead to increasing debt.
However, the global economy could also do better if there was a boost in productivity through technological innovations such as the use of artificial intelligence.
Stronger international cooperation would also have a positive impact.
The G20 meetings are followed with great interest worldwide.
Powerful people from the most powerful countries on earth meet here regularly to consult, debate and negotiate.
It goes without saying that great importance is placed on the safety of the participants at these meetings.
A story from last year's organizer in India, which is strange from a European perspective, shows that it is not just people who are considered a potential danger: the authorities there also did everything they could to protect politicians from wild monkeys.
(Reuters, lf)