The meeting of G20 finance ministers and central bank governors concluded on Sunday with a communique analyzing the risks, which the US-Chinese trade tensions pose for the global growth
FUKUOKA (Japan) (Pakistan Point News / Sputnik - 09th June, 2019) The meeting of G20 finance ministers and central bank governors concluded on Sunday with a communique analyzing the risks, which the US-Chinese trade tensions pose for the global growth.
The US-Chinese trade tensions came in the wake of US President Donald Trump's decision last June to impose 25 percent tariffs on $50 billion worth of Chinese goods in a bid to fix the trade deficit. Since then, the sides have exchanged several rounds of duties.
"Global growth is projected to stabilize in the second part of the year but there are still several risks of decrease," the communique said stressing, however, that a lot depended on the foreign trade tensions that may negatively affect the world economy.
In this regard, Japan, which was presiding the meeting, insisted on discussing the US-Chinese trade standoff multilaterally in order to avoid severe bilateral confrontation. This idea was embodied in the communique's provision stating that "it is vital to take into account foreign trade in services, balance of income and other structural factors while assessing the foreign trade balance."
The document also included another Japan-proposed point that was dedicated to the impact that ageing of society has on the economy, employment and labor market.
The communique also expressed concern over "the transparency of investments in developing economies" and stressed the need for investing in infrastructure with taking into account the existing debts of the countries. According to the document, it is also crucial to strengthen the regulation of companies that focus on registration and licensing of cryptocurrencies.
However, according to the communique, the global economy is projected to grow from the end of the current year and into 2020.
The meeting of G20 finance ministers and heads of central banks concluded on Sunday in the city of Fukuoka, Japan, being one of the eight ministerial gatherings held throughout Japan alongside the G20 Summit in Osaka in late June. Russia was represented by Deputy Finance Minister Sergey Storchak and head of Central Bank Elvira Nabiullina.