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Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie
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G20 Reaffirms Global Economic Resilience, Warns of War, Trade Risks


Fri 17 Oct 2025 | 06:23 AM
Taarek Refaat

Finance leaders from the world’s largest economies concluded their meeting in Washington on Thursday by reaffirming confidence in the resilience of the global economy, while sounding alarms over mounting risks from geopolitical conflicts, trade tensions, and climate-related disruptions.

Rather than a formal communiqué, the G20 issued a presidential summary, reflecting broad consensus without unanimous agreement on all issues, a format increasingly common amid deepening divisions within the bloc.

The summary emphasized that the global economy remains fundamentally resilient, despite a challenging environment marked by elevated debt levels, fragile supply chains, and escalating geopolitical instability.

However, the G20 warned that the economic fallout from wars and growing protectionism could threaten global recovery and long-term development.

"Extreme weather events, trade fragmentation, and armed conflicts are straining global systems," the summary stated, calling for renewed international cooperation to preserve financial stability.

While the G20 noted that the risk of a systemic debt crisis appears to be largely under control, it acknowledged that low- and middle-income countries, especially in Africa, continue to face high borrowing costs and limited fiscal space.

“Persistent financing challenges remain a serious concern for developing nations,” the finance ministers noted, urging international financial institutions to provide more targeted support and debt relief options.

The meeting echoed broader warnings from multilateral organizations like the IMF and World Bank, which have called 2025 a “make-or-break year” for sustainable debt solutions in vulnerable economies.

The G20 reaffirmed that central bank independence is essential to maintaining price stability, as member nations navigate differing inflation dynamics and monetary policy paths.

With inflation pressures easing in some advanced economies but persisting in others, the group stressed the importance of data-driven and transparent policymaking to avoid unintended spillovers.

The absence of a joint communiqué reflects underlying tensions within the G20, particularly around language related to ongoing military conflicts and trade disputes.

Still, the presidential summary signals a shared recognition that global cooperation remains vital, even as multilateral institutions face strain in an increasingly multipolar world.