JAKARTA (TheInsiderStories) – All eyes will go to G20 meeting in Buenos Aires, Argentina on November, amid the trade tensions between the two countries. The United States (US) President Donald Trump probably will meet Chinese President Xi Jinping at the meeting.
Indonesia’s President Joko Widodo, President World Bank Jim Yong Kim, and International Monetary Fund (IMF) Managing Director Christine Lagarde’s calls on G20’s members to de-escalate the trade tension or risk a further drag on global economic growth and alerts on the financial crisis.
IMF said, it is possible that emerging markets other than China may face outflows in the debt market for at least US$100 billion in the medium term.
“I want to emphasize at this time that we are entering the final session of the fight for global economic expansion, full of rivalry and competition. It could be a critical situation for the global economic crisis 10 years ago,” Widodo said to the global financial leaders on Friday (12/10).
He added, “We depend on fiscal and monetary policy makers to safeguard the commitment of global cooperation. I really hope that you will contribute to encouraging world leaders to respond to the situation.”
He reminded the panel, that 10 years ago the world experienced a global financial crisis and urged the makers of world fiscal and monetary policy, to maintain the commitment of global cooperation. “I really hope you will contribute in encouraging world leaders to address this situation appropriately,” said him.
He quoted Lagarde’s statement right now to many problems that overshadow the world economy. For now, he continued, the United States enjoys rapid growth, but in many countries its growth is weak or unstable.
“With various problems in the world economy, it is enough for us to say that winter is coming,” said Widodo by added next year, the world will see the last session of the Game of Thrones series.
Meanwhile, according to Nicolás Dujovne, Argentine Minister of the Treasury, the Fourth G20 Meeting of Finance Ministers and Central Bank Governors reached no new resolution but optimistic to settling the trade dispute.
The conclusions in Bali, he said, are another step towards the G20 Leaders’ Summit that will be held on Nov. 30 and Dec. 1 in Buenos Aires. On Nov. 29, hours before the Summit, Finance ministers will meet a fifth and last time to wrap up their work during the G20 2018.
With respect to trade tensions, Dujovne said on Oct. 12, “We agreed that international trade is an important engine of growth, and we need to resolve tensions which can negatively affect market sentiment and increase financial volatility.”
Cooperation among G20 members is key to sustain global financial stability, he said.
Furthermore, Lesetja Kganyago, Governor of the South African Reserve Bank explained, the 2018 Annual Meetings in Bali, produce a communique, that the global expansion remains strong. Growth is projected to be steady in the near term and moderate thereafter.
However, he said, the recovery is increasingly uneven, and some of the previously identified risks have partially materialized. Overall, risks are increasingly skewed to the downside amid heightened trade tensions and ongoing geopolitical concerns, with tighter financial conditions particularly affecting many emerging market and developing countries.
Policy uncertainty, historically high debt levels, rising financial vulnerabilities, and limited policy space could further undermine confidence and growth prospects, added by him. The IMF-WB next meeting will be held in Washington, D.C., on April 13, 2019.