Jim Chalmers warns of 'dark shadow' hanging over global economy
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The news: Treasurer Jim Chalmers has warned that the risk of further escalation in the Middle East risks pushing up oil prices and throwing the global economy back into turmoil, as he prepares to travel to the United States for meetings with his counterparts from the other G20 countries.
The context: Chalmers has confirmed he will travel to Washington DC for meetings with other economic ministers and central bank governors from the Group of 20 nations, as well as senior officials from the International Monetary Fund and the World Bank.
He will meet new Japanese Finance Minister Katsonobu Kato for the first time, as well as US Treasury Secretary Janet Yellen, US Federal Reserve chair Jerome Powell, director of President Joe Biden’s National Economic Council, Lael Brainard, South Korean Deputy Prime Minister and Minister of Economy Choi Sang-Mok, and Canadian Deputy Prime Minister, Chrystia Freeland.
He will also meet Australia's ambassador to the US and former prime minister Kevin Rudd.
The meetings come as Israel air assault on Lebanon continued this week, with at least 13 strikes from Israeli drones and the Air Force across the southern suburbs of Beirut.
The prospect of a wider war in the Middle East involving Iran has sparked fears that global oil supplies could be put at risk.
What they said: "Australia is not immune from the volatility and vulnerability which characterises the global economy," Chalmers said.
"The risk of further escalation in the Middle East threatens a resurgence in oil prices and casts a dark shadow over the global outlook.
"Conflict in the Middle East compounds the pressures already coming at us from the war in Ukraine, the slowdown in China, persistent global inflation, tepid global growth and sharp movements on stock markets.
"There is always a premium on responsible economic management and engagement but especially now, with all this uncertainty around the world.
"This is a really critical time to confer with colleagues and counterparts.
"There will be in-depth discussions on the global economy, the energy transformation, economic security and reform of our multilateral institutions."
The sources: BBC, Treasury
