G20 finance ministers and central bank governors are gathering in Bangkok, Thailand, on Thursday amid an uncertain global outlook influenced by the US-Israel conflict involving Iran. The meetings coincide with the annual gatherings of the International Monetary Fund (IMF) and the World Bank, which are taking place in the Thai capital from October 12 to October 18.
The G20 is an economic forum that includes 19 large economies, such as the United States, China, the United Kingdom, Australia, Brazil, India, Japan, Indonesia, and Saudi Arabia, along with the European Union and the African Union. The group holds an annually rotating presidency, currently held by the US, and collectively represents about 85 percent of global gross domestic product (GDP) and three-quarters of global trade.
Established in 1999 in response to the Asian Financial Crisis, the G20 has evolved into a broader forum for national leaders to address shared economic concerns. The IMF, headquartered in Washington, DC, promotes international cooperation on monetary policy, trade, and economic growth, while the World Bank provides loans and grants to developing countries and has 189 member countries.
Notable attendees in Bangkok include IMF Managing Director Kristalina Georgieva and World Bank Group President Ajay Banga. However, US Treasury Secretary Scott Bessent will not attend due to “domestic engagements,” with the US represented by Deputy Secretary Francis Brooke and Undersecretary for International Affairs Erin Browne.
The G20 meeting is expected to influence the agenda for the upcoming leaders' summit in Miami, Florida, scheduled for December 14-15. Discussions will likely focus on the economic repercussions of the US-Israel war on Iran, which has disrupted economic activity in the Middle East and caused a surge in global energy prices. Crude oil prices have remained above $100 a barrel for much of the past eight months, impacting government budgets and household expenses, particularly in the Gulf region and Asia.
Ahead of the meeting, Australia’s Treasurer Jim Chalmers MP expressed the need to end conflicts in the Middle East and reopen the Strait of Hormuz, stating, “that’s what the global economy desperately needs.” He noted that the war is driving up fuel prices, inflation, and interest rates worldwide.
Other agenda items are expected to include rising debt levels in several countries, which exceed 100 percent of GDP in the US, Canada, Japan, Italy, and France. In a speech on Wednesday, Georgieva highlighted the risks posed by increasing debt and the lack of easy solutions for governments to avoid tax increases or spending cuts.
G20 members will also address individual economic and geopolitical concerns. The US has raised issues regarding “global imbalances,” particularly related to China’s industrial model and trade surplus, which reached $938 billion in September. In a statement to the IMF, Bessent emphasized the need for action on trade balances and the impact of non-market policies on competition and employment.
However, divisions among member countries may hinder coordinated efforts, as evidenced by the failure to issue a joint communique at the last G20 finance ministers' meeting in Asheville, North Carolina, due to objections from China regarding trade language.