G-10 confirmed the economic recovery that has been globally, and described as “impressive” the case of emerging economies.
It also warned the soaring prices of some food in emerging economies and dismissed a case of inflation at advanced economies.
According to G10, the model of household consumption is changing in emerging economies, so it could be an inflationary threat in these economies.
It is possible that some emerging economies need to increase interest rates to curb inflation; this would raise the differential with the advanced economies and attract capital inflows.
The central banks of G-10 agree on the importance for all global economies to have “fiscal soundness” to consolidate the economic recovery.
The G-10 -group that forms the 85% of the world economy- are Germany, Belgium, Canada, USA, France, Italy, Japan, Netherlands, United Kingdom Sweden and Switzerland.