G20 nervous over Delta threat to economic recovery

As healthcare systems brace for damage inflicted by the quickspreading Delta variant, G20 finance ministers warned yesterday that it could also slow global economic recovery.

“The recovery is characterised 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, which first appeared in India and is spreading rapidly, causing outbreaks in Asia and Africa, and driving up case numbers in Europe and the United States.

“We have very good economic forecasts for all the G20 countries,” French Economy Minister Bruno Le Maire said.

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 in an interview that the UK had showed “vaccines are effective at preventing hospitalisations 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 antiCovid restrictions.

All eyes in France will be on President Emmanuel Macron’s speech tomorrow, when he will set out next steps as case numbers rise, while Argentina has extended its own measures until early August.