Durban, South Africa – Finance ministers and central bank governors from the world’s 20 largest economies have issued their first joint communiqué since October 2024, highlighting unity on key global financial principles amid rising geopolitical and economic tensions. The two-day summit concluded in Durban with firm commitments to central bank independence, multilateralism, debt restructuring reforms, and trade cooperation.
The declaration reaffirmed that central bank autonomy remains vital for maintaining global price stability. This comes as political pressure mounts in some countries, particularly following criticism by the U.S. presidential candidate of Federal Reserve Chair Jerome Powell. Leaders emphasized that monetary authorities must remain free from political interference to fulfill their mandates effectively.
The communiqué also renewed support for multilateral cooperation and a comprehensive reform of the World Trade Organization (WTO). Officials stressed the need to ensure fair, transparent, and predictable trade practices while carefully avoiding the direct use of the word “tariff” in the final language, opting instead for “trade tensions.”
A major focus was placed on improving the G20’s Common Framework for debt restructuring. Member nations acknowledged the urgent need to streamline the process for vulnerable low- and middle-income countries. They called for more involvement and transparency from private creditors, aiming for predictable, timely, and orderly debt treatments.
While addressing the economic risks, the document cited extreme weather and natural disasters, but avoided direct references to climate change. Likewise, ongoing wars and conflicts were mentioned in general terms, with no specific reference to the wars in Ukraine or Gaza. This softer tone reflects the G20’s effort to preserve unity despite differing views among its members.
Markets responded positively to the meeting. The South African rand strengthened by about 0.6% to 17.7050 against the U.S. dollar, and the country’s main stock indices rose by more than 1.5%, driven by optimism over the G20’s reaffirmed commitment to global economic cooperation.
Finance leaders also expressed cautious optimism about global growth prospects. The International Monetary Fund (IMF) indicated it may raise its global economic growth forecast, citing improving conditions and slowing inflation. However, the IMF also warned that escalating trade tensions continue to pose a major risk to recovery.
German Bundesbank President Joachim Nagel and Canadian Finance Minister François-Philippe Champagne were among those who underscored the importance of institutional independence and global rule-of-law frameworks. Champagne also urged the G20 to focus on investing in infrastructure and development across Africa to foster inclusive economic growth.
Though the communique avoided controversial geopolitical language, its core message signaled a renewed alignment on macroeconomic fundamentals, central bank independence, and collective action on global economic challenges. As global financial volatility continues, G20 leaders pledged to uphold the principles of transparency, cooperation, and institutional integrity.