G20 Summit – what to expect and to beware of

The G20 Summit is an annual summit held in different countries. The G20 is a kind of union of governments and heads of central banks representing the most developed economies in the world. The G20 group represents 85% of world GDP and two thirds of the world’s population. The twenty largest economies in the world include: Australia, Argentina, Brazil, Great Britain, Germany, India, Indonesia, Italy, Canada, China, Mexico, Russia, Saudi Arabia, the USA, Turkey, France, South Korea, South Africa, Japan and the European Union. Also at the G20 summit there are representatives of various large world organizations.

The main goal of the G20 meeting is always the solution of world economic problems and stable growth of the world economy.

In 2019, the G20 summit will be held in Japan in Osaka on June 28-29. The financial security, environmental problems, or rather, the fight against plastic in the World Ocean, and the US trade war are already called as the main topics of the upcoming summit. At last it is worth more attention.

The topic of economic security will be the main one at the upcoming G20 summit in Japan in 2019. Since the effects of the US trade war have already had a slowdown on the growth of the world economy.

In addition to the US-China trade relations, the summit participants will discuss an impact of the new US trade agreements. And, last but not least, the possibility of further review of trade relations with the United States in the future.

Already since the beginning of 2019, when signs of a slowdown in the world economy began to show, the United States began to call the trade war a catalyst for the new economic crisis. This topic will be actively discussed at the G20 summit. Therefore, further trade relations between the United States and its partners can be called the main theme of the G20.

The second no less significant topic of economic security remains the US – China trade relations. Significant manipulations around the meeting of the US leader D. Trump and China leader Xi Jinping were carried out earlier. Earlier it was expected that the President of China would not be at the summit, which caused an increase in fears around the US – China trade war.

But just a week before the summit, Xi Jinping confirmed participation in the summit. By this, he reduced partially the market tension due to the exacerbation of a trade war. There is also evidence that the leaders of the United States and China will hold talks. This was repeatedly stated by the US President D. Trump.

There is no reason to expect a weakening of the US-Chinese trade war. The fact of the negotiations in the framework of the G20 can make a positive signal for the global economy and stock indices. Therefore, the possibility of discreet statements aimed at stabilizing the world economy is not excluded. More concrete results can be expected from private talks between the United States and other trading partners,  as practice shows.

Anton Hanzenko