G-20 leaders to confront energy prices, other economic woes
ROME » Leaders of the Group of 20 countries gathering for their first in-person summit since the pandemic took hold will confront a global recovery hampered by a series of stumbling blocks: an energy crunch spurring higher fuel and utility prices, new COVID-19 outbreaks, and logjams in the supply chains that keep the economy humming and goods headed to consumers.
The summit will allow leaders representing 80% of the global economy to talk — and apply peer pressure — on all those issues. Analysts question how much progress they can make to ease the burden right away on people facing rising prices on everything from food and furniture to higher heating bills heading into winter.
Here’s a look at some of the economic issues facing G-20 leaders.
Pandemic recovery
The International Monetary Fund says the top priority for the economic recovery is simple: speed up the vaccination of the world population. Yet big headlines on vaccine cooperation may not be forthcoming at the Rome summit.
Health and finance officials there warned of a two-track recovery, with vaccine and spending gaps slowing poorer countries from bouncing back.
Global taxes
One major economic deal is already done: The G-20 will likely be a celebration of an agreement on a global minimum corporate tax, aimed at preventing multinational companies from stashing profits in countries where they pay little or no taxes. All G-20 governments signed on to the deal negotiated among more than 130 countries, and it now faces an ambitious timeline to get approved and enacted through 2023.
Energy prices
The summit offers an opportunity for dialogue on high oil and gas prices because it includes delegations from major energy producers Saudi Arabia and Russia, major consumers in Europe and China, and the U.S., which is both.
Supply chain
Biden will press for countries to share more information about troubles with supply chains that have slowed growth in the developed world. Port and factory closures, shortages of shipping containers and rising demand have contributed to backlogs at ports and delays for deliveries of everything from bicycles to computer chips used in smartphones and cars.
Longer term, leaders can discuss efforts to diversify supply of key goods such as masks, other medical protective equipment and semiconductors.