The G20 officials’ meeting on Saturday in the southwestern Chinese city of Chengdu will be a debut of sorts for Britain’s newly-appointed finance minister Philip Hammond, who will be grilled about the UK’s plans for keeping up economic growth.
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The outcome of June’s referendum “adds to the uncertainty in the global economy”, they said in a communique after a meeting of central bankers and ministers in the Chinese city of Chengdu. But Hammond also showed he was aware of the need for some clarity on Brexit: “What will start to reduce uncertainty is when we are able to set out more clearly the kind of arrangement we envisage going forward with the European Union”.
At the meeting of the G-20 Finance Ministers and Central Bank Governors in Shanghai five months ago, we committed to use all policy levers – monetary, fiscal and structural reforms – in an effort to boost global growth.
Lew underscored the need to use all policy tools, including fiscal and monetary policies as well as structural reforms, to shore up global economic growth, the US officials said. “We say that not to put undue pressure on the British authorities but because I believe that is what everyone – all observers and the markets – need”.
Chinese Finance Minister Lou Jiwei called for more coordination to promote sustainable growth, as fiscal and monetary tools were becoming less effective.
“A lot of concerns were voiced over spreading measures for protectionism”, said a Japanese ministry official.
On the day before Britons voted to leave the European Union, the Fund was “prepared to upgrade” the global growth forecast for 2016-2017, according to IMF chief economist Maury Obstfeld. German Finance Minister Wolfgang Schaeuble Saturday told reporters that there’s great concern “in Germany and everywhere in Europe that what is happening in Turkey is not in line with what we understand as democracy and the rule of law”, amid a crackdown on political opponents in the wake of this month’s coup attempt.
Overcapacity coupled with weak economic growth around hte world has caused a negative impact on trade and workers.
“At the same time there are very exciting opportunities opening up with China, with Australia, with India, and with many other countries” once Britain has withdrawn from the European Union, he said.
Overcapacity was a “global issue which requires collective responses”.
The Chancellor said he had started discussions with the powerhouse nation about an ambitious free trade deal, which could see Chinese firms having greater access to the United Kingdom economy.
Lipton also said other countries may not be able to follow China in improving living standards and developing into major growth engines if global interconnectedness were to suffer.
Bank of Japan Governor Haruhiko Kuroda said he would ease policy further if necessary to achieve its 2 percent inflation goal, but again shrugged off talk of the BOJ taking the radical policy step of “helicopter money”.
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“This G20 meeting did not discuss things seen as helicopter money, or even the word helicopter money at all”, he said.
