About the G24 and its Relevance
The Group of Twenty-Four (G24), which includes Mexico as a member, aims to bolster domestic fiscal and monetary conditions. This strategy is viewed as the first line of defense against external shocks, such as those arising from the reconfiguration of global trade.
Pablo Quirno, Argentina’s Secretary of Finance and the current president of G24, explained this approach. “By enhancing the resilience of economies with a credible fiscal track record and robust monetary policies, we will create a more reliable environment for investors,” he stated.
Addressing Global Market Volatility
During the traditional press conference where G24 countries outline their negotiation topics for the Spring Meetings of the International Monetary Fund (IMF) and the World Bank, Quirno addressed the prevailing uncertainty fueling global market volatility.
He emphasized that this context is particularly challenging for emerging and developing economies. “As long as trade conditions do not normalize, we will remain subject to uncertainty,” Quirno stressed.
Impact of Tariff Increases
G24 countries believe that tariff hikes will negatively affect real wages, disrupt global supply chains, and disproportionately impact emerging and developing markets due to their limited diversification.
Key Questions and Answers
- What is the Group of Twenty-Four (G24)? The G24 is an informal forum of 24 developing countries and emerging economies within the International Monetary Fund (IMF). It aims to promote global economic growth and address financial stability issues.
- Why is strengthening fiscal and monetary conditions important? By enhancing the resilience of economies with credible fiscal records and robust monetary policies, G24 seeks to create a more reliable investment environment.
- What external shocks is G24 addressing? G24 focuses on external shocks such as the reconfiguration of global trade, which can lead to uncertainties and volatilities in emerging and developing economies.
- How will tariff increases affect emerging and developing markets? Tariff hikes are expected to negatively impact real wages, disrupt global supply chains, and disproportionately affect emerging and developing markets due to their limited diversification.
