Buenos Aires, July 23 (IANS) The last session of the G20’s Third Meeting of Finance Ministers and Central Bank Governors has taken place here, with delegates acknowledging the rise in trade tensions while calling for greater dialogue.
“We… recognize the need to step up dialogue and actions to mitigate risks and enhance confidence,” the G20 said in a final communique on Sunday, adding that the member states were “working to strengthen the contribution of trade to our economies”.
The finance ministers of the G20 also acknowledged that short-and medium-term economic risks had increased due to “rising financial vulnerabilities, heightened trade and geopolitical tensions, global imbalances, inequality and structurally weak growth, particularly in some advanced economies.”
With the rise in protectionist trade policies as the underlying topic of the summit, the finance ministers and central bank governors reiterated the agreements reached during the 2017 G20 summit in Hamburg regarding the commitment to free trade and the need “to strengthen the contribution of trade to our economies.”
On the issue of exchange rates, another topic that has created major tensions, the G20 nations expressed their intention of clearly communicating their structural and macroeconomic policies.
The G20 leaders said that monetary policies should continue to ensure stability, which was one of the commitments reached during the last meeting of finance ministers.
Regarding emerging economies, the ministers stated that these countries were now “better prepared to adjust to external shocks,” yet they still faced challenges from “market volatility and reversals of capital flows”.
The G20 leaders noted the importance of infrastructure as one of the pillars of growth and development, and as a crucial element to attract investments.
The finance ministers also spoke of the need to ensure that the benefits of technology are widely shared, adding that they would respond to the challenges created by technology affecting individuals, businesses and governments.