G20 nations in pledge to boost growth
FINANCE ministers at the G20 summit in China have pledged to boost sluggish global growth and promised to defend against the shockwaves of Britain’s vote to leave the EU.
In a joint statement after a two-day meeting, envoys for the group of the world’s 20 largest economies also rejected trade protectionism, an issue that has risen in prominence as US Republican presidential candidate Donald Trump has talked about restricting access to American markets.
The summit in Chengdu, attended by Chancellor Philip Hammond, pledged to use spending, monetary policy and regulatory reforms to strengthen growth. It also promised to improve communication and cooperation.
“We are taking action to boost confidence and promote growth,” said the statement.
It promised to use “any and all policy instruments to achieve strong, sustainable, balanced and inclusive growth objectives”.
US Treasury Secretary Jacob Lew said ahead of the meeting that it was not the right time for coordinated action similar to that in 2008-09 following the global crisis because economies face different conditions.
The gathering of finance ministers and central bank governors took place against a backdrop of a weak global recovery, tension over Chinese exports of low-priced steel and Britain’s EU vote, which jolted global markets.
The statement called for a “close partnership” between Britain and its European neighbours.
On Friday, the head of the International Monetary Fund, Christine Lagarde, called for quick action to end uncertainty about the British-EU split. She said that turmoil prompted the IMF to cut its forecast of this year’s global growth by 0.1 percentage points.
The referendum “increased global economic uncertainty,” said the statement.
“G20 members are ready to actively respond to the potential economic and financial impact brought by the British referendum. In the future, we hope to see Britain as a close partner of the EU.”
The envoys also pledged to avoid devaluing currencies to boost exports.
“We will oppose all forms of protectionism,” the statement added.
Mr 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.