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In the wake of the global financial crisis, the G20 summit has become a popular forum of global governance and cooperation. In the heat of the disaster, G20 members came together to sustain global financial stability. The G20 has been a useful pool of information and decision making that have steered the global financial markets since 2008.
The Group of Seven consists of the most industrialised and advanced countries in the world representing 58% of global net worth and 30% of the world’s economy. The G7 Summit focuses on the broader array of economic and political challenges.
The financial crisis in 2008 recognize the era where countries need to seek more cooperation among themselves to promote a sound global financial system. Therefore, the G20 is primarily dedicated to international economic cooperation and allows China, India and other emerging nations to take a more significant global role. It acknowledges the shift towards emerging economies. G20 accounts for 84% of global investment and 63% of the world’s population.
Argentina has set “Building Consensus for fair and sustainable development” as the slogan for the leaders’ summit this year concentrating on three key priorities “the future of work, infrastructure for development and food security.” However, protectionism measures have been the main talks ahead of the summit. In the meeting in Bali earlier this year, all the members agreed that heightened trade and geopolitical tensions are among the most critical downside risks in the short and medium term.
The G20 summit is, therefore, the “Golden Opportunity” for Trump and other leaders to engage in trade talks. Face- to face meetings might be better to ease trade frictions. As of writing, news that China has outlined a series of trade concessions are emerging. Hence, investors are optimistic that the G20 meeting might bring more positive news than anticipated couple of weeks before given that the US-China decided to restart trade negotiations.
The Summit has the potential to move the financial markets, and any headlines will likely go under intense scrutiny.
Mark Your Calendar – 30 November – 01 December!!
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