Online Reporter
South Africa called for greater cooperation among the Group of 20 advanced economies, as finance ministers and central bank governors gathered under the cloud of US President Donald Trump’s trade war.
Finance Minister Enoch Godongwana, co-host of the two-day gathering at a luxury Indian Ocean resort near the east-coast city of Durban, warned that headwinds were threatening the global economy.
“While inflation is moderating and financial conditions have started to stabilise in some regions, uncertainty continues to weigh heavily on global growth prospects,” Godongwana told his guests. “A rise in trade barriers and persistent global imbalances and new geo-political risks,” are a concern, he said.
Trump has convulsed financial markets with his threat of tariffs on US trading partners from August 1, including a 30 percent levy for South Africa, who the US president has also falsely accused of permitting a genocide against White Afrikaner farmers.
The International Monetary Fund in April cut its projection for 2025 global growth to 2,8 percent from a January forecast of 3,3 percent.
South African central bank Governor Lesetja Kganyago separately warned that while inflation was easing in some places, it remained “higher than desired and persistent.” For their part, G20 central bank leaders will grapple with having to “navigate what uncertainty means for both their price and stability mandates,” he said.
This is the third G20 finance meeting this year. The previous two failed to produce a communique, with a chairman’s summary indicating the group could not reach a consensus.
Officials from the US, which assumes the rotating G20 presidency in December, have consistently opposed wording around climate funding and inclusivity of institutions which have been the cornerstone of South Africa’s agenda. — Bloomberg
Bongani Ndlovu