G20 Warns of Global Economy Challenges, Geopolitical Tension

The meeting aims to review global economic developments at a time characterized by growth slowdown and mounting pressures resulting from record debt burdens. (G20 website)
The meeting aims to review global economic developments at a time characterized by growth slowdown and mounting pressures resulting from record debt burdens. (G20 website)
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G20 Warns of Global Economy Challenges, Geopolitical Tension

The meeting aims to review global economic developments at a time characterized by growth slowdown and mounting pressures resulting from record debt burdens. (G20 website)
The meeting aims to review global economic developments at a time characterized by growth slowdown and mounting pressures resulting from record debt burdens. (G20 website)

Group of 20 finance leaders meeting in Brazil this week are expected to make only a passing reference in their closing statement to regional conflicts, according to a draft version seen by Reuters, due to deep divisions over wars in Gaza and Ukraine.

US Treasury Secretary Janet Yellen on Tuesday called on allies to move forward urgently to unlock the value of frozen Russian sovereign assets to help Ukraine.

"Risks to the global economic outlook are more balanced," with faster-than-expected disinflation and more growth-friendly fiscal consolidation underpinning growth, the draft said.

"Among the downside risks to the global economy are [wars and] escalating conflicts, geoeconomic fragmentation, rising protectionism, and trade routes disruptions," the draft communique said.

The reference to "wars" in brackets reflects efforts to reach a consensus on the final language, said a person familiar with the matter.

G20 finance officials are expected to set aside geopolitics and focus on global economic issues as they gather in Sao Paulo this week.

Brazil's coordinator of the finance track at G20, Tatiana Rosito, said on Tuesday that the group is moving towards a short communique that reflects Brazilian priorities.

In the draft communique, the G20 finance leaders gave an optimistic view on the outlook for price pressures. Inflation has receded in most economies, they said, thanks in part to "appropriate" monetary policies, easing supply chain bottlenecks and moderating commodity prices.

The draft also said the G20 group reaffirms their existing exchange-rate commitment, which warns against excess volatility and volatile currency moves as undesirable for economic growth.

Meanwhile, Yellen said Israel has agreed to resume tax revenue transfers to the Palestinian Authority to fund basic services and bolster the West Bank economy. She called on Israel to allow commerce to resume there for the sake of its own economy and that of the Palestinians.

In the remarks, Yellen said she also urged Israeli Prime Minister Benjamin Netanyahu in a recent letter to reinstate work permits for Palestinians and reduce barriers to commerce within the West Bank.

"These actions are vital for the economic well-being of Palestinians and Israelis alike," Yellen said.

"We continue to explore options for strengthening the West Bank economy" following an executive order issued by President Joe Biden earlier this month, Yellen added.

Yellen said Washington supported the World Bank’s commitments to emergency food security assistance in Gaza and economic support for the West Bank, and other ongoing loan programs by regional development banks and the International Monetary Fund in neighboring Egypt and Jordan.

She said Washington had not seen a significant impact of the conflict on the global economy but would continue to monitor the situation closely.

She noted that Washington had also led efforts to counter the financing of Hamas and responded to Houthi attacks in the Red Sea.



Saudi Arabia Calls for Global Water Cooperation to Advance Integrated Management

The first preparatory meeting for the 11th World Water Forum 2027 kicked off in Riyadh on Monday. (11th World Water Forum 2027 | Riyadh 2027 on X)
The first preparatory meeting for the 11th World Water Forum 2027 kicked off in Riyadh on Monday. (11th World Water Forum 2027 | Riyadh 2027 on X)
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Saudi Arabia Calls for Global Water Cooperation to Advance Integrated Management

The first preparatory meeting for the 11th World Water Forum 2027 kicked off in Riyadh on Monday. (11th World Water Forum 2027 | Riyadh 2027 on X)
The first preparatory meeting for the 11th World Water Forum 2027 kicked off in Riyadh on Monday. (11th World Water Forum 2027 | Riyadh 2027 on X)

The first preparatory meeting for the 11th World Water Forum 2027 kicked off in Riyadh on Monday with the participation of top scientists, experts, decision-makers from around the world.

Saudi Minister of Environment, Water and Agriculture Abdulrahman Alfadley, with the participation of World Water Council President Loïc Fauchon, inaugurated the official logo of the World Water Forum 2027.

In his remarks, Alfadley emphasized Saudi Arabia’s call for strengthened international cooperation and joint efforts among countries and organizations to tackle global water challenges. He underscored the importance of ensuring universal access to water and sanitation services as a key pillar in achieving Sustainable Development Goal 6 (SDG 6).

“Saudi Arabia prioritizes the water sector through various measures, including the adoption of a national strategy encompassing water production, storage, transportation, distribution, treatment, and reuse, all within a comprehensive institutional framework,” Alfadley added.

He further stated that the Kingdom has implemented Integrated Water Resources Management and enhanced supply chain governance. This is supported by the release of a long-term supply and demand plan that extends to 2050, alongside a commitment to environmental, social, and economic considerations in alignment with Saudi Vision 2030.

Highlighting the Kingdom's leading role in supporting regional and international water issues, Alfadley pointed to the launching of the Global Water Organization, aimed at fostering international collaboration, and the establishment of an International Water Research Center focused on water economics, water security, advanced technologies, and digital transformation.

Fauchon said the council, in collaboration with Saudi authorities, has developed a comprehensive framework outlining the thematic, regional, and political components that will shape the roadmap for the 11th edition of the forum that is being held in the Middle East for the first time.

He stressed the need to make water a top global priority, adding that this gathering will lay the foundation for future water policies. “The way ahead is still long, but we are confident we’re on the right path toward real solutions—solutions that can change lives,” he said.

Deputy Minister for Water at the Ministry of Environment, Water, and Agriculture Dr. Abdulaziz Alshaibani underscored the urgency of the current moment, describing the preparatory meeting as a call for serious and immediate action. Alshaibani emphasized the need to build upon existing progress in the water sector and to move decisively towards solidifying priorities.

He stressed the importance of greater coherence and integration across all sectors, along with the unification of all efforts, to achieve tangible solutions to global water challenges and to meet SDG 6. Alshaibani further noted that effective solutions must be anchored in several key pillars, including financing, innovation, diplomacy, and environmental considerations.

The World Water Forum 2027, organized by the World Water Council in Saudi Arabia, is a significant international platform for exchanging ideas and experiences in water management.