G20 Sees Soft Landing for Global Economy; Leaders Pledge to Resist Protectionism as Trump Calls for Imported Goods Flat Tariff

By Hironari Akiyama and Hiroyuki Tanaka / Yomiuri Shimbun Correspondents

17:43 JST, October 25, 2024

WASHINGTON — Finance ministers from the Group of 20 nations voiced optimism about a soft landing for the global economy while pledging to resist protectionism at two days of talks in Washington.

The G20 Finance Ministers and Central Bank Governors Meeting adopted a joint statement, concluding on Thursday.

Downside risks to the economy included in the statement were “wars and escalating conflicts, economic fragmentation … more persistent than expected inflation.”

There are concerns about the spread of protectionism with former U.S. President Trump, Republican presidential candidate for the U.S. election, calling for imposing a flat tariff on imported goods. The G20 finance leaders underlined their commitment to resisting protectionism.

The global economy is focused on whether it will be possible to get inflation under control without causing a major economic downturn.

At a press conference after the meeting, Bank of Japan Gov. Kazuo Ueda said, “There was recognition [among participants] that a soft landing would be achieved.”

Commenting on the upcoming U.S. presidential election, Finance Minister Katsunobu Kato said, “We need to keep a close eye on the situation, including its impact on the Japanese economy.”

The G20 nations reaffirmed previous agreements on exchange rates, stating that excessive volatility and disorderly movements in exchange rates have negative impacts on economic and financial stability.

On Thursday, Kato met with U.S. Treasury Secretary Janet Yellen and confirmed that they would maintain close communication on exchange rates.

The statement contained no condemnation of Russian aggression in Ukraine.

In the summary, Brazil, the chair, noted that a variety of views were expressed by participating countries, including on the situation in the Middle East.