Ministry of Economy and Finance Emphasizes Need for Supply Chain Recovery at G20 Deputy Finance Ministers Meeting

The Ministry of Economy and Finance announced on the 16th that it urged discussions on supply chain recovery at the G20 Deputy Finance Ministers and Central Bank Governors Meeting held in Brasilia, Brazil from the 13th to the 15th.

Moon Ji-seong, Director General for International Finance at the Ministry, attended as the chief representative and expressed the view that "the damage to vulnerable countries caused by the fragmentation of the global economy must be mitigated."

Director Moon also emphasized the need for discussions on fiscal soundness to support the green transition for vulnerable countries amid climate change and to bolster the fiscal capacity of these countries.

He further requested, "Please promptly resolve the debt issues of vulnerable countries and review the utilization outcomes of the International Monetary Fund (IMF) Special Drawing Rights (SDR) allocated by member countries to support low-income countries."

This meeting was the first finance sector meeting hosted by Brazil, the G20 chair country for next year, under the theme of "Building a Fair World and a Sustainable Planet."

Member countries supported the chair country’s core agenda of "reducing inequality" at this meeting and agreed to prepare policy recommendations considering global economic risks and the distributive impacts of the climate transition process.

Member countries raised factors causing inequality such as geopolitical conflicts, supply chain fragmentation, high inflation, and rising debt, emphasizing that growth and structural reforms are necessary to reduce inequality.

Additionally, the government reported that member countries agreed with the chair country’s proposal to establish an MDB reform roadmap, which includes improving the operational efficiency and expanding the financial resources of multilateral development banks (MDBs).

This content was produced with the assistance of AI translation services.