A divided G20 meets on Thursday while dealing with a number of challenges, including the Russian invasion of Ukraine, a worldwide economic slowdown, skyrocketing prices, and climate change.
During this week’s annual meetings of the IMF and Globe Bank, which have highlighted the numerous issues the world is facing, finance ministers and central bankers from the Group of 20 major economies are congregating in Washington.
Threats include increasing poverty and catastrophic disasters attributed to climate change, as well as rising food prices and interest rates.
This week, the IMF revised downward its growth projection for the global economy for the coming year, stating that “the worst is yet to come.”
But unlike previous meetings presided over by Indonesia this year, the G20, which includes Russia, is anticipated to adjourn without issuing a common statement.
Having a joint communique “may be challenging,” according to a French economy ministry source.
Other nations have maintained economic relations with Moscow despite the unprecedented sanctions the West has put on Moscow, with India and China increasing their purchases of Russian oil.
The Group of Seven wealthy democracies is now looking to cap the prices of Russian crude exports, a move aimed at stripping the country of a major source of funding for its war effort.
The G7 – which includes Britain, Canada, France, Germany, Italy, Japan and the United States – said Wednesday it had made “significant progress” in key parts of its proposal, noting that it had added Australia to its coalition.
Gaining broad global approval for a price cap is a key challenge for the proposal.
The Saudi-led OPEC group of oil exporters has angered the United States by agreeing on a drastic production cut with Russia and other allies, which could send energy prices soaring even higher.
US President Joe Biden warned of “consequences” for Saudi Arabia in an interview with CNN this week.
“We’re done,”
Tensions inside the G20 are rising as leaders prepare to gather in Bali, Indonesia, for a summit that could put Vice President Biden in the same room with rivals Chinese President Xi Jinping and Russian President Vladimir Putin.
The lack of agreement within the group also occurs before the COP27 climate summit of the United Nations, which will take place in Egypt in November.
One of the main subjects this week at the IMF and World Bank meetings was climate change.
