G-20 finance ministers to focus on global growth

SYDNEY: The market turmoil sparked by the Federal Reserve’s steps towards removing the US economy from life support is expected to be a top agenda item when finance chiefs from the world’s biggest economies meet in Sydney this weekend.

The Group of 20 (G-20) finance ministers and central bankers meeting is a precursor to the main G-20 summit that will be held in Brisbane in November. The meeting’s host, Australian treasurer Joe Hockey, said the Fed’s decision to begin scaling back its stimulus will be a key part of discussions, along with reinvigorating global growth.

In response the tapering possibility, investors responded by pulling out of emerging markets and funneling their money to the US in hopes of higher returns, which contributed to sharp falls in stock markets and the currencies of some developing countries.

The G-20, which represents around 85% of the global economy, is made up of both wealthy nations and emerging economies from the US to Saudi Arabia and China.