Japan cautious on global economy, urges support for poor nations

FILE PHOTO: Japan's newly-appointed Finance Minister Taro Aso speaks at a news conference in Tokyo, Japan, September 16, 2020. REUTERS/Kim Kyung-Hoon

TOKYO (Reuters) - The global economy warrants caution due to uncertainty over coronavirus vaccinations and variants, though Japan’s economy shows signs of recovery with low infections, Japanese Finance Minister Taro Aso said on Friday.

Speaking to reporters after attending a virtual meeting of Group of 20 financial leaders, Aso also urged the major economies to unite in backing low income countries given widening disparities of economic growth and vaccinations.

“To support low income countries, Japan will back a new allocation of SDRs (Special Drawing Rights),” Aso said, referring to the International Monetary Fund’s resources.

Reporting by Tetsushi Kajimoto; Editing by Andrew Cawthorne