G-20 Says World Economy Has Growing Chance of Soft Landing

At the recent G-20 meeting in Brazil, finance chiefs have expressed optimism about the global economy’s prospects, highlighting an increasing chance of achieving a soft landing despite recent challenges. According to a draft of the G-20’s closing statement, this positive shift is attributed to a faster-than-expected disinflation, suggesting a more balanced outlook for the global economy. However, the statement, still under negotiation, acknowledges ongoing challenges such as conflicts in various regions, including Ukraine and Gaza, and geoeconomic tensions, without specifying them. This draft communique, dated February 23 and seen by Bloomberg News, captures a cautiously optimistic stance amidst the backdrop of the pandemic, inflation surges, and rising interest rates, reflecting a significant turnaround from the economic struggles of recent years.