Jim Chalmers concedes global economy faces a dangerous moment during meeting with G20 colleagues in Washington
The global economy is at a dangerous point, battered by shocks and upheavals, Jim Chalmers has told G20 colleagues meeting in Washington.
The global economy is at a dangerous point, battered by shocks and upheavals, Jim Chalmers has told G20 colleagues meeting in Washington.
But the Treasurer said this made it even more important to strengthen international relationships, secure supply chains, and lift speed limits on domestic economies.
Dr Chalmers has made a fleeting visit to the US capital for talks with the International Monetary Fund, World Bank, and G20 finance ministers.
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By continuing you agree to our Terms and Privacy Policy.The crisis arising from the US-Israel-Iran war is dominating the agenda as ministers grapple with the unpredictable fallout’s effects on their budgets.
“It seems every time we meet we’re dealing with new perils and pressures and this week is no different,” Dr Chalmers told the G20 finance ministers meeting overnight.
“It’s a dangerous moment for the global economy: slower growth, higher inflation and unemployment, extreme volatility.
“The perils and pressures of 2026 are no reason to park the hard but necessary reforms to make our budgets more sustainable and our economies more productive, and the economic fallout from this war is no excuse to turn inwards.
“We can act together to contain this shock – or we can act alone to compound it.”
Earlier, he joined colleagues from the UK, Japan, Sweden, the Netherlands, Finland, Spain, Norway, Ireland, Poland and New Zealand to call for a swift end to the war in the Middle East and the full reopening of the Strait of Hormuz.
They said there had been “unacceptable loss of life and disruption to the global economy and financial markets”.
The statement also called on all countries to “avoid protectionist actions” like export controls on fuel and oil products or stockpiling.
Dr Chalmers said that even if their plea for an enduring ceasefire was heeded straight away, that didn’t mean everything would immediately return to normal.
“There is no ‘normal’ anymore, and the fallout from this conflict will be felt for some time even if the ceasefire sticks and the Strait reopens soon,” he said.
“Lasting damage has been done, and the recovery will be longer and harder than any of us would like.”
