• Ukraine crisis overshadows G20 meeting ending Friday
  • G20 to use ‘all available tools’ for recovery – draft statement
  • Inflation high in many companies – draft press release
  • The draft statement does not directly mention Ukraine

JAKARTA/TOKYO, Feb 18 (Reuters) – Finance officials from the Group of 20 major economies are likely to warn on Friday that rising inflation and geopolitical risks could threaten a fragile global recovery, such as the crisis in Ukraine and the fallout from the COVID-19 pandemic the outlook.

Fears of Russia invading Ukraine overshadowed a meeting of G20 finance ministers and central bank governors, which was expected to focus heavily on how to scale back stimulus policies in crisis mode without disrupting the post recovery. -pandemic.

In a draft statement seen by Reuters, the finance chiefs of the world’s major economies pledged to use “all available policy tools to address the impacts of the pandemic”, while warning that the future policy space is likely to be ” narrower and uneven”. Read more

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Inflation is currently high in many countries due to supply disruptions, a mismatch between supply and demand, as well as rising commodity and energy costs, the project says. of press release.

“Central banks will act as necessary to achieve price stability in accordance with their respective mandates, while remaining committed to clearly communicating their policy positions,” ministers and governors said.

The draft statement made no direct reference to the crisis on the Ukraine-Russia border, saying only the G20 will continue to monitor risks, “including those resulting from (current) geopolitical tensions.”

The word “current” in parentheses indicates that it could be deleted from the final communiqué if Russia, a member of the G20, objects.

The G20 financial leaders will issue the final communiqué after their meeting ends on Friday. The talks were held both virtually and in Jakarta.

The divergent pace of the recovery from the pandemic complicates the policy trajectory of central banks. Steady interest rate hikes expected by the US Federal Reserve have drawn attention to the potential fallout for emerging markets.

While cases of the Omicron variant of COVID-19 are receding in many wealthy countries, they continue to rise in many developing countries, including host country Indonesia.

G20 financial leaders should voice support for ensuring rapid and affordable access to COVID-19 vaccines, treatments, diagnostics and other medical supplies for low- and middle-income countries, according to the draft statement.

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Reporting by Gayatri Suroyo and Leika Kihara; Editing by Kim Coghill

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