Leaders from the world’s biggest economies are poised on Sunday to restore their dedications to support global growth and better coordinate actions in the face of uncertainty over Britain’s decision to leave the European Union and growing protectionism.
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The outcome of last month’s referendum “adds to the uncertainty” for the global economy, the group of the world’s 20 largest economies said.
International Monetary Fund (IMF) managing-director Christine Lagarde (C) leaves the G20 finance ministers meeting in Chengdu, in China’s Sichuan province on July 24, 2016.
U.S. Treasury Secretary Jack Lew said the United States strongly supports the Turkish government and urged it to investigate the failed coup in a way that reinforces public confidence in democratic institutions and promotes economic stability.
In light of recent developments, G20 expressed the determination to use “all policy tools – monetary, fiscal and structural – individually and collectively to achieve our goal of strong, sustainable, balanced and inclusive growth”.
To foster confidence, monetary policies will continue to support economic activity and ensure price stability, but monetary tools alone can not lead to balanced growth, state-run Xinhua quoted the communique as saying.
Lew, in a bilateral meeting with Japanese Finance Minister Taro Aso, reiterated the need for G20 members to refrain from competitive devaluations.
Premier Li Keqiang also said the world should not look to China as the sole engine of growth because a global recovery required the input of many other countries.
Zhao also said: “But Li is right that China is now moving towards slower growth, and the world can’t expect China to continue its old growth model”.
“We will also talk about China but most of the G20 are convinced that the country will manage to have a soft landing”, said a European official involved in the G20.
The gathering of G20 ministers is the first since the Brexit vote in June.
But French finance minister Michel Sapin told AFP that as well as monetary policy, which could not “do everything”, fiscal policy should be used “as much as possible”.
The finance ministers pledged to work to boost the global economy and deal with the potential protectionism issue in the wake of the vote, the Independent reported.
Finance ministers said on Saturday that the world’s 20 major economies need to cooperate more deeply regarding tax collection and data sharing as multinational companies try to reduce to a minimum the amount of tax they pay to governments.
The communique issued Sunday discussed addressing excess capacity in steel and other industries, language that was not in the statement from the previous meeting in April.
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The G20 should promote “international coordination and cooperation in taxation”, he said.
