G20 Finance Ministers and Central Bank Governors Convene in Washington

The first G20 Finance Ministers and Central Bank Governors meeting of the year took place on April 16, focusing on the global economic outlook, structural impediments to growth, and global imbalances. Participants expressed deep concern over the impact of the Middle East situation on the global economy, noting that prolonged conflicts are persistently driving up energy prices, disrupting supply chains, and raising inflation expectations. Many countries currently face structural challenges including insufficient investment, labor market difficulties, and excessive regulatory burdens on businesses. The meeting supported intensified experiencesharing within the G20 Finance Track to identify and remove obstacles to economic growth.

In his address, the Governor of the People’s Bank of China noted that geopolitical conflicts are posing severe shocks to global supply systems. He called on all countries to support multilateralism and strengthen macroeconomic policy coordination to jointly address global challenges. On the issue of global imbalances, he argued that the recent widening stems both from rising protectionism leading to trade fragmentation and from inherent flaws in the international monetary system. Deficit and surplus economies, he suggested, need to work together to achieve global rebalancing while avoiding the side effects of unilateral policies.

Regarding China’s economy, the Governor reported continued stable development with structural optimization. Financial markets have remained stable, and the conditions underpinning longterm growth are unchanged. During the current FiveYear Plan period, China will prioritize domestic demand, implement measures to boost consumption and develop the service sector, and integrate investment in physical assets with investment in human capital to raise productivity growth. China will also continue its green transition and highstandard opening up. The central bank will maintain a moderately accommodative monetary policy.

No new joint action plan or binding commitments emerged from the meeting.