Key facts
- German Finance Minister Lars Klingbeil stated that geopolitical uncertainty is 'poison for economic growth'.
- Klingbeil cited US tariff disputes and China's competition distortions as sources of global instability.
- Bundesbank President Joachim Nagel noted that the German economy has shown resilience and momentum is returning.
- Nagel highlighted a decline in euro zone core inflation and warned of the need for fiscal discipline.
German Finance Minister Lars Klingbeil stated that geopolitical uncertainty is weighing on global growth and that G20 countries must work to reduce it. Speaking on the sidelines of a G20 finance ministers and central bank governors meeting in Asheville, North Carolina, Klingbeil identified the Iran war, ongoing US tariff disputes, and China's distortion of competition as factors contributing to instability.
Klingbeil emphasized Germany's support for a rules-based international order and multilateralism, stating that Europe must respond more forcefully when trading partners do not adhere to agreed rules to protect domestic industry, the economy, and jobs. Despite higher prices due to conflicts and described uncertainty, the German economy grew by 0.3% in the second quarter, with Bundesbank President Joachim Nagel noting that momentum appears to be returning.