G20 finance ministers and central bank governors wrapped up the third finance track meeting, issuing a communique that highlights the complex challenges the world faces, brought about by the heightened uncertainty as a result of geopolitical and trade wars.

They have pledged to strengthen multilateral cooperation to address existing and emerging risks to the global economy.

The finance leaders say there is a need to pursue growth-oriented macroeconomic policies while building fiscal buffers, ensuring fiscal sustainability, encouraging public and private investment and undertaking productivity-enhancing reforms.

Finance ministers and central bank governors describe the discussions as having been productive and constructive. The global economic outlook, macroeconomic stability, the international financial architecture, financial inclusion, sustainable finance and infrastructure were issues on top of the agenda, among others.

Some of the global challenges cited included conflicts, geopolitical and trade tensions, supply chain disruptions, high debt levels, and extreme weather events, among others.

“They agreed to bolster long-term economic growth potential by pursuing macroeconomic policies while building buffers,, ensuring financial and fiscal sustainability, encouraging public and private investments, taking productivity and reforms, and safeguarding central bank independence to maintain price stability. A renewed pledge was made to strengthen multilateral cooperation to address emerging and existing risks to the global economy, says Deputy Finance Minister Dr David Masondo.

G20 Finance meeting: Deputy Finance Minister, Reserve Bank Governor brief media:

Independence of central banks

Another issue on the agenda was the independence of central banks. The communiqué recommended that central banks continue to ensure price stability in line with their mandates while maintaining independence, which it said was crucial

Reserve Bank Governor Lesetja Kganyago says, “There had been contestations about central banks around the globe; pronouncements were also made in Europe, and at the meeting of central bank governors at the IMF in Washington in April, the issue of central bank independence came very strongly there. Unfortunately, there were no communiqués at that time. But this time, because there is a communique, you are seeing it. The last time we had a communique was in Brazil last year at the G20 and the IMF, which is another forum where these things are discussed; it came out strongly in the conversations about central banks’ independence.”

This was the last meeting of the G20 finance ministers and central bank governors being held in the country under South Africa’s presidency.

G20 finance ministers and central bank governors will next meet in Washington, D.C., on the sidelines of the annual World Bank and International Monetary Fund meetings in October.

South Africa will then host the G20 Leaders’ Summit in November.