G20 Countries very nervous over Delta threat to their economic recovery
As healthcare systems brace for damage inflicted by the quick-spreading Delta variant, G20 finance ministers warned Saturday that it could also slow economic recovery of the G20 Countries.
“The recovery is characterized by great divergences across and within countries,” and “remains exposed to downside risks, in particular the spread of new variants of the COVID-19 virus,” they said in a final statement.
The ministers also warned of the dangers of the “different paces of vaccination” around the world.
The main concern is the Delta variant.
“We have very good economic forecasts for all the G20 countries,” French Economy Minister Bruno le Maire explained.
But he warned: “The only thing that could threaten a solid and rapid rebound of the economy is the variant, and a new wave of the pandemic. We must improve vaccination, everywhere in the world.”
Britain’s Rishi Sunak was more defiant, telling AFP that the UK had showed “vaccines are effective at preventing hospitalizations and deaths, even with the Delta variant.”
“I think that gives us the confidence to move forward and slowly and safely reopen our economies and countries,” he said.
Many countries, however, from Spain to Thailand, have moved to re-introduce anti-COVID-19 restrictions.
Rising concern over the Delta variant comes on the heels of the easing of restrictions in many countries, which has breathed much-needed fresh air into many of the major economies.
The G20 has called for vaccination campaigns worldwide to be accelerated, pledging to do more to help developing countries give their citizens jabs.
While 70 percent of the population is vaccinated in some developed countries, the figure is less than 1.0 percent for low-income countries, according to UN Secretary-General Antonio Guterres.
Equity markets were also spooked this week, as a report from the latest US central bank meeting showed a debate on tightening monetary support is underway, despite the ongoing health crisis.
The European Commission this week raised its Europe growth expectations for 2021, saying it now forecasts a rise of 4.8 percent, compared to 4.3 percent previously.
The G20 finance ministers sounded a more cautious note on Saturday, pledging to “continue to sustain the recovery, avoiding any premature withdrawal of support measures.”
