The G20 Finance Ministers and Central Bank Governors Meeting, hosted by the USA, ended without reaching an agreement on a joint declaration due to China’s comments on critical economic and geopolitical items.
The G20 Finance Ministers and Central Bank Governors Meeting, held in Asheville, North Carolina, between 31 August and 1 September, was completed.
At the meeting, where issues such as global growth, debt and global imbalances were on the agenda, G20 members could not agree on a common declaration text.
In the G20 Presidential Statement published by the USA after the meeting, it was emphasized that the global economy remained resilient despite the ongoing conflicts.
It was stated in the statement that bureaucracy should be reduced, artificial intelligence investments should be supported and critical supply chains such as energy and food should be protected, and that the focus was on removing administrative obstacles to business growth and innovation, with the participation of private sector representatives in the meetings.
In the statement, it was warned that global imbalances threaten economic stability and called for countries that are overly dependent on exports to make reforms that will increase domestic consumption.
In addition, it was stated in the statement that the G20 Common Framework should be implemented more quickly and transparently in order to alleviate the debt burden of developing countries, and the importance of increasing financial literacy around the world was emphasized.
China annotated the statement by objecting to the 4th article, which touches on energy trade and geopolitical conflicts, the 10th article, which envisages the removal of non-market policies that hinder domestic consumption regarding global imbalances, the 11th article advocating International Monetary Fund (IMF) control over these imbalances, and the 13th article dealing with debt restructuring processes.
“ALL MEMBERS ARRIVED UNION EXCEPT CHINA”
US Treasury Secretary Scott Bessent said at the press conference that he hoped to announce a joint statement reflecting the results of the meetings, but a full consensus could not be reached.
Underlining that all members of the G20 except one reached a consensus, Bessent stated that the text in the G20 Presidential Statement reflects the issues that are important for the 19 members.
Bessent noted that China, “the country with the world’s largest and unsustainable current account surplus,” opposed the declaration.
On the question of inviting representatives from Russia to meetings, Bessent emphasized that this left an unpleasant impression on some Europeans, but that dialogue and interaction are of great importance.
According to news in the country’s press, an official from the US Treasury Department stated that the joint declaration text reflecting the priorities of the US on reducing global imbalances and restructuring government debts may not be possible due to some differences of opinion.
“We are working hard on a declaration, but we want to make sure it reflects U.S. interests and ‘America First’ priorities, and if we don’t reach a conclusion, that wouldn’t be a problem for us,” the official said. While using his statements, he noted that the alternative way would be to publish a statement about the negotiations.
IMF’S EMPHASIS ON “SIMULTANEOUS POLICY” FOR A PERMANENT BALANCE
In her written statement after the G20 meeting, International Monetary Fund (IMF) President Kristalina Georgieva stated that there are significant differences between countries in terms of economic outlook and risks.
Georgieva noted that the energy supply shock is not over yet, global public debt has reached nearly 100 percent of Gross Domestic Product (GDP), and the disinflation process has paused in many countries.
Emphasizing that central banks should focus on price stability, financial authorities should prepare reliable medium-term fiscal consolidation plans, and obstacles to growth should be removed through structural reforms, Georgieva stated that high refinancing needs and increasing debt service costs in developing and low-income countries limit infrastructure, health and education expenditures.
Georgieva called for improving debt restructuring processes and strengthening countries’ financial resilience.
In addition, Georgieva stated that global extreme imbalances will increase by 0.7 percent of GDP in 2025, recording the largest increase in the last decade, and emphasized that simultaneous policy steps are needed in both surplus and deficit countries for a permanent balance.
