G20 Warns Global Economic Recovery Still Faces Significant Downside Risks

    New restrictions imposed to limit the outbreak has hit economic activity, forcing governments and central banks to ramp up stimulus again. While the restrictions are less severe than they were during the first wave of the pandemic, they have increased the chances of some countries falling back into recession.

    "The economic recovery has been uneven, highly uncertain, and faces significant downside risks, including from repeated outbreaks in some economies," according to the draft G-20 communiqué, showing the new virus restrictions could push some economies back into recession, raising concerns about the risk that the economic recovery could be derailed.

    "We are determined to continue to use all available policy tools for as long as necessary to protect people's lives, jobs and incomes, support the global economic recovery and strengthen the resilience of the financial system," the G-20 statement also showed that governments continue to call for all available tools to support the economy and safeguard jobs will not change for a while.