Ahead of the meeting the International Monetary Fund (IMF) downgraded its forecast for global growth this year, and officials in Chengdu said protracted talks between the European Union and Britain over the departure could heighten risks.
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Britain comes under pressure at G20 to give Brexit clarity * Hammond says United Kingdom needs time to come up with strategy * Greater clarity on way forward possible by year end * EU economics chief says don’t delay too long (Adds Hammond comments, EU’s Moscovici, background) By William Schomberg CHENGDU, China, July 24 (Reuters) – Britain’s new finance minister Philip Hammond, under pressure from his peers from around the world, said on Sunday there could be more clarity later this year on how the country will exit the European Union. “Global growth remains weak, and downside risks have become more salient”, the Washington-based lender said in a report.
“It’s a new factor affecting the global economic outlook and it has increased the uncertainty which the world economy faces”. She said that turmoil prompted the International Monetary Fund to cut its forecast of this year’s global growth by 0.1 percentage point.
“Reforms that facilitate the scaling up of infrastructure investment would help raise productive capacity, boost short-term demand directly, and catalyse private investment”, it said. Officials from many countries have said they want more clarity on how the Brexit process will unfold.
Fiscally rigorous Germany in particular is reluctant to endorse the use of government spending to boost growth, seeing it as ineffective.
Ahead of the G20 gathering, a German ministerial source told reporters that the use of government stimulus would not be one of the meeting’s main themes. Finance Ministers and Central Bank Governors of the 20 most dev.
Other challenges threaten: a slowdown in the Chinese economy, as well as terrorist attacks and the failed coup in Turkey – which have rattled financial markets.
Earlier this month 84 people were killed in the French city of Nice when a Tunisian truck driver – suspected to be inspired by the Islamic State jihadist group – ploughed his vehicle through crowds.
Japan’s Deputy Prime Minister and Finance Minister Taro Aso, second right, chats with China’s Finance Minister Lou Jiwei, right, and Turkey’s Deputy Prime Minister Mehmet Simsek, left, before a group photo for the G20 Fina. “The reality is there will be a measure of uncertainty continuing right up to the conclusion of our negotiations with the European Union”.
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Trump, who was named the Republican Party’s nominee for president on Friday, setting up a race with presumptive Democratic nominee Hillary Clinton, has stirred alarm about trade by calling for measures to protect American industry, though he has given no details. Lackluster growth of the post-crisis era continues, with weak demand in advanced economies and hard transitions to a self-sustained growth model in many emerging markets.
