G20 financial chiefs flag global economic 'soft landing', warn of risks from war

27/7/2024 6:26

        G20 financial leaders said on Friday the global economy was likely heading for a "soft landing", but warned wars and escalating conflicts could endanger this outlook, while more global cooperation could make growth stronger.
        
        In a joint communique after a two-day meeting in Brazil, finance ministers and central bankers from the Group of 20 major economies also committed to resist protectionism in trade and stressed the need to reduce economic inequalities.
        
        Last month, the World Bank forecast that the global economy would avoid a third consecutive decline in growth since a major post-pandemic 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 communique said. "Downside risks include wars and escalating conflicts," it said.