What a difference a month makes. Before the last meeting of G20
The new US administration's attitude toward international cooperation seems to have become more conciliatory
finance ministers and central-bank governors in mid-March, the financial markets expressed quite a bit of uncertainty about what position the G20's new US government representative would take. As a result, not many were surprised that the group's subsequent communiqué did not express a strong commitment to globalization and to free trade – though this was remarkably different from the past.
The situation is quite different in the run-up to this week's meeting, which is taking place in connection with the International Monetary Fund's spring gathering in Washington DC. While the key topics of the discussions – inclusive global growth and the international financial architecture – have not changed
This G20 meeting does not appear to be as potentially disappointing as the last – which could be good news for investors
much, the new US administration's attitude toward international cooperation seems to have become more conciliatory. This probably has to do with new geopolitical tensions in Syria and North Korea. In addition, statements from other summit participants suggest that the G20 meeting has gained importance as an international discussion forum. As a result, the G20 as a central institution for international cooperation could emerge stronger after this meeting.
It seems that the time for more cooperation is upon us again – a confidence-building development for the financial markets. So despite a string of erratic political news headlines coming out of the US, this G20 meeting does not appear to be as potentially disappointing as the last – which could be good news for investors.