The Group of 20 (G20), a forum of the world’s major advanced and emerging economies, warned of escalating threats to the global economy and renewed its call for coordinated action, as widening geopolitical conflicts, trade restrictions, and supply chain disruptions cloud the outlook for growth.

In a chair’s summary following the recent finance ministers and central bank governors’ meeting in Washington D.C., South Africa said G20 members “emphasized the importance of strengthening multilateral coordination to address existing and emerging risks to the global economy.”

The G20 cautioned that trade frictions, ongoing wars, and disruptions in critical manufacturing routes “could raise risks to financial and price stability,” stressing these must be managed “in a way that contributes to an open global economy and without compromising sustainable global growth.”

Rising protectionism and the deepening strategic rivalry between the United States and China dominated the talks, with concerns mounting over policy spillovers that could hurt global supply chains.

Japan flagged the economic fallout of China’s export restrictions on rare earth minerals — vital to the automotive, electronics, and defense industries. Bank of Japan Governor Kazuo Ueda acknowledged that while global markets have so far held up, “uncertainty and complex challenges” continue to weigh on economic momentum.

For emerging markets like the Philippines, the G20’s warning underscores renewed vulnerability to external shocks.

Slower global growth and weaker demand from major trade partners could drag on Philippine exports, particularly electronics, minerals, and agricultural products. The country also remains exposed to pricing instability as supply chain tensions continue to push up import costs.

Geopolitical unpredictability and volatile commodity markets may further complicate monetary policy for the Bangko Sentral ng Pilipinas (BSP), which remains focused on managing inflation while supporting economic expansion.

The BSP has reiterated that prudent fiscal management and diversified trade relationships are essential in cushioning the domestic economy against global volatility.