G20 warns 'geopolitical tensions' pose risks to growth

Baku, July 23, AZERTAC

Group of 20 finance ministers warned today that "heightened trade and geopolitical tensions" posed risks to global economic growth as two days of meetings came to a close. The G20 emphasized "the need to step up dialogue and actions to mitigate risk and enhance confidence", in its final communique after a summit dominated by fears over an escalating global trade conflict.

The statement did not mention the United States, which is at the center of multiple trade disputes, but was still stronger than the statement in March when the G20 avoided the issue altogether.

G20 ministers described current global economic growth as "robust" in the communique but cautioned that "short and medium term" risks "have increased". As well as trade tensions the communique identified "rising financial vulnerabilities", "global imbalances" and "inequality" amongst the risks.

The ministers and central bank chiefs met against a backdrop of the United States trading punitive tariff sanctions the European Union and China, amongst others.

The G20 statement reaffirmed commitments made in March on exchange rates, when the ministers agreed to "refrain from competitive devaluations, and will not target our exchange rates for competitive purposes".

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