The G-20 finance ministers are not expecting a major crash. Nevertheless, there are fears that things could turn out differently – also because of Donald Trump’s announcements.
The finance ministers of the G-20 countries are giving the cautious all-clear for the global economy. “We see good prospects for a soft landing for the global economy, although numerous challenges remain,” said the joint statement on Thursday at the conclusion of the G-20 finance ministers’ meeting on the sidelines of the annual meetings of the International Monetary Fund and the World Bank in Washington was published. This means: You expect that the weakness of the global economy will not result in a crash.
The G-20 is encouraged by the fact that economic activity in many parts of the world has proven more resilient than expected. In the statement, the G-20 finance ministers also called for resistance to protectionism.
The G-20 finance ministers have also confirmed their willingness to work together on increasing taxes on the super-rich. “With full respect for tax sovereignty, we look forward to discussing potential areas of cooperation to ensure that very wealthy individuals are effectively taxed,” the final statement said. “We will continue to work together to create a fairer, more inclusive, stable and efficient international tax system fit for the 21st century,” it said.
This should be done through a stronger “commitment to tax transparency and promoting global dialogue on effective taxation, including of very wealthy individuals”.
The finance ministers of the G-20 countries had already agreed at a meeting in Rio de Janeiro in July to work together on taxation of the super-rich. However, a proposal put forward by Brazilian left-leaning President Luiz Inácio Lula da Silva to introduce a minimum tax on the richest failed to find consensus. Brazil currently holds the G20 presidency.
The meetings will be overshadowed by the upcoming US presidential election on November 5, which is raising fears that the Republican candidate Donald Trump will win the White House – partly because of voters’ anger over high inflation during the term of Democratic President Joe Biden could move in. There are fears of a new era of protectionist trade policy and new US debts running into trillions.
The G-20 finance ministers’ final statement made no mention of the Russian invasion of Ukraine, which has long been a point of contention within the group. There was also no comment on the conflicts between Israel and the radical Islamic Hamas in the Gaza Strip and the Hezbollah militia in Lebanon.
There was no joint final declaration at previous ministerial meetings in February. Among others, the German Finance Minister Christian Lindner (FDP) did not sign the planned declaration at the time because these conflicts were excluded.
A separate statement from Brazil, which holds the G20 presidency this year, said this time that members had different views on whether the conflicts should be discussed within the group. “Some members and other participants believe that these issues have an impact on the global economy and should be addressed within the G20, while others believe that the G20 is not the right forum to discuss these issues.”
The G-20 heads of state will meet on November 18th. The finance ministers should also take part.
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