Finance Minister tells G20 nations to unite on tackling inflation

Economy

Published: 19 Jul. 2023, 17:42 Updated: 19 Jul. 2023, 18:51

Finance Minister tells G20 nations to unite on tackling inflation

Finance Minister Choo Kyung-ho, left, and World Bank chief Ajay Banga during the G20 Finance Ministers and Central Bank Governors Meeting held in India for two days from Monday. [MINISTRY OF ECONOMY AND FINANCE]

Finance Minister Choo Kyung-ho has stressed the need for a coordinated effort among G20 nations to tame steep inflation.

During the two-day G20 Finance Ministers and Central Bank Governors Meeting in Gandhinagar, western India, Choo underscored the necessity to align monetary and fiscal policies in order to slow inflation, said the Ministry of Economy and Finance in a statement Tuesday. Choo highlighted Korea’s efforts to minimize the growth of fiscal expenditure while adopting tariff-rate quotas on major goods to reduce inflationary pressure.

Korea has been adopting tariff-rate quotas on key products, like pork and industrial products, including naphtha, to tame inflation. Korea’s consumer inflation fell to a 21-month low of 2.7 percent in June. It was the first time the figure fell below 3 percent in 21 months.

“We welcome global cooperation designed to boost the resilience of the supply chain, including the Indo-Pacific Economic Framework,” Choo said during the meeting.

During the two-day meeting that ended Tuesday, Choo met U.S. Treasury Secretary Janet Yellen, Chinese Finance Minister Liu Kun and World Bank chief Ajay Banga.

Some of the issues discussed in the meeting included the global economy and health, sustainable finance and infrastructure, international financial system and taxation.

The finance minister also encouraged G20 member countries to support developing national measures on climate change and to take part in a fund aimed to support such efforts.

“As much as it requires large amounts of funds and risks to respond to climate change, the role of the green climate fund is pivotal,” said Choo, as quoted in a Finance Ministry statement.

There were opinion differences on some issues, such as matters related to the war in Ukraine and the global economy, said the Finance Ministry.

The latest meeting was the last G20 Finance Ministers and Central Bank Governors Meeting ahead of the G20 Leaders’ Summit, scheduled to take place in New Delhi, India, in September.

BY JIN MIN-JI [jin.minji@joongang.co.kr]