G20 performance on macroeconomic policy

Since the G20 summit’s start, discussions of global economic stability and macroeconomic policy coordination have anchored its agenda. However, over the past decade, this focus has gradually diminished. Despite above-average compliance with commitments on macroeconomic policy, the G20’s deliberations and decision-making on the issue have consistently declined, reflecting missed opportunities for the G20 to take a much-needed and timely role in global economic governance.

Deliberation

Since 2008, G20 leaders have dedicated 75,125 words to macroeconomic policy, although in recent years the number has plummeted to unprecedented lows. The 2008 Washington Summit dedicated 18% of its declaration to macroeconomics, a figure that grew until the historic peak of 54% at the 2014 Brisbane Summit. That was followed by a steep drop: 42% at Antalya in 2015, 29% at Hangzhou in 2016 and 23% at Hamburg in 2017. Between 2020 to 2024, this proportion slid from 34% at Riyadh in 2020, 20% at Rome in 2021, 13% at Bali in 2022, and 2% at both New Delhi in 2023 and Rio de Janeiro in 2024. Thus, the 2025 Johannesburg Summit takes place after two G20 summits that only produced about 160 words on macroeconomic policy, mainly on sustainable and inclusive growth, the green transition and circularity, reform of global governance institutions and the international economic situation.

Decisions

The total of 530 commitments on macroeconomic policy made since 2008 account for 14% of all 3,656 commitments on all subjects, placing the issue first in the G20’s declarations. However, decision-making on this subject has steadily declined in recent years. From 2008 with 6% until 2012 with an unprecedented 39%, apart from a small dip in 2010, the number of macroeconomic commitments grew consistently. The number of decisions on macroeconomics has decreased since then. After a brief surge in 2018 to 16%, all summits since 2019 have made macroeconomic commitments in single-digit percentages, reflecting the G20’s gradual yet substantial shift to other subjects. 

delivery

Of the 39 macroeconomic commitments assessed for members’ compliance by the G20 Research Group, the G20 averaged 81%, substantially above the G20’s overall 71% average. No clear chronological trend appears; compliance figures have been steadily robust in G20 history, with more than half of summits scoring between 80% and 90% compliance on macroeconomic commitments. The highest compliance, of 95%, came with commitments made at the 2020 Riyadh Summit. This was followed by the 2019 Osaka Summit with 89% compliance, the inaugural 2008 Washington Summit with 88% and the 2010 Toronto Summit with 87%. A notable dip occurred in 2016 with 69% and 2017 with 65%. At those two summits, the number of macroeconomic conclusions and commitments made by G20 leaders also declined, together with the deteriorating compliance.

By May 2025, compliance with the one assessed priority commitment on macroeconomic policy, on fiscal policy, made at the 2024 Rio Summit, averaged 79% compliance. 

The most compliant member on macroeconomic policy is Canada at 96%, followed closely by the European Union at 93% and Germany at 91%. Closely behind are Australia, China, the United Kingdom, Korea, India and Russia, respectively scoring 89%, 87%, 86%, 85%, 84% and 83%. They are followed by Mexico’s 81%, Japan’s 79% and Indonesia’s 77%. Argentina, France and the United States all had 75%, followed by Brazil at 74%, then Saudi Arabia and Italy both at 72%. Türkiye had 70%. South Africa ranked last, but still in the positive range, at 64%.

Causes

The priority placement of macroeconomic policy in the declaration’s chapeau helps ensure high-level policy visibility. Commitments with high-binding language and time-bound remit mandates also produce higher compliance.

Conclusion

To improve the G20’s macroeconomic performance, as G20 host South Africa can restore the importance of macroeconomic issues on the G20 agenda, reinvigorating one of the G20’s raisons d’être since its inception and responding to the volatile international economic context. Indeed, South Africa has established the Task Force on Inclusive Economic Growth, Industrialisation, Employment and Reduced Inequality to align “macroeconomic, sectoral, labour-market, social protection and environmental policies behind the shared objectives of creating decent work and reducing inequalities” and to discuss green industrial policies. However, it remains to be seen whether this macroeconomic focus will be upheld in ministerial and leaders-level outcomes. In today’s complex and challenging global economic context, falling short of prioritising macroeconomic issues would be a missed opportunity for the G20 in 2025.