Treasurer wary of ‘evolving’ risks ahead of G20 talks

Finishing the job on global inflation and laying the foundations for economic growth will be top priorities for the federal treasurer when he meets with his counterparts in Brazil.

Jim Chalmers, who will meet with other finance ministers and central bank leaders at G20 talks in Sao Paulo this week, said the global economic outlook remained “highly uncertain”.

“And the risks are evolving,” he said.

He said about a quarter of G20 economies were either recording technical recessions or narrowly avoiding them as higher interest rates weighed heavily on growth.

The treasurer said the Australian economy had not been immune but “confronts these challenges from a position of genuine economic strength”.

Dr Chalmers said he would report on the nation’s progress on price pressures, wages and budget repair.

“I will also highlight the importance of collaboration when it comes to tackling global inflation and laying the foundations for strong, sustainable and inclusive growth,” he said.

“This G20 meeting will provide valuable perspectives on the evolving global outlook and will be an important forum for collaboration on shared challenges.”

The global economy still faces risks including geopolitical tensions in the Middle East, although the latest International Monetary Fund outlook report was optimistic the world could manage a “soft landing”.

Forecasts for growth had broadly been revised upwards since the October report, with inflation predictions largely marked down and falling faster than expected in most regions.