The leading industrial and emerging countries (G20) want to prevent a further weakening of the global economy with a reform drive. The G20 finance ministers and -Notenbankchefs agreed on Saturday in Shanghai on doing more to achieve global growth targets. “Faster progress in structural reforms should eventually strengthen potential growth and our economies more innovative, more flexible and more resistant,” reads the final declaration of the G20 finance ministers meeting in Shanghai. Grant
A “currency war” and devaluation
States by the strong exchange rate fluctuations of recent months a rejection. You want to work more closely together in the monetary policy. “We will consult closely in regard to the currency markets,” it says. The countries want to explicitly set any targets for the respective exchange rates, which benefits could be obtained commercially.
the countries painted a very mixed picture of the current situation in the world economy growth.. stay behind target and is very uneven, it said in the statement. there would also be growing risks. These include the G20, the possibility of an exit of Britain from the EU (Proposed referendum on United Kingdom membership of the European Union) and the refugees in several regions of the world, including Europe.
worry about trouble spots and low oil prices
burdened are the geopolitical trouble spots, such as the Middle East, and the collapse of commodity prices as the oil. The concern that the recent downward revisions in growth rates in the world not yet constitute the end had risen. However, With regard to the recent turmoil on the financial markets, such stands are not consistent with the actual developments, it was said
German Finance Minister Wolfgang Schaeuble said after the two-day discussions in the Chinese metropolis. “Obviously, we in recent years as part of the G 20 to some extent moved toward each other. “the world economic situation is better than the variations made to believe in the markets. “There is absolutely no reason for a crisis.” It was agreed to counteract excesses without the position to talk nicely. When it comes to Greece Schäuble is dismissive. While the country is in a difficult situation, but there is no acute danger bankruptcy. At the summit the issue of Greece did not play a major role, they had but exchanged on the edge now. The magazine “Der Spiegel” had previously reported that the International Monetary Fund (IMF) assume that the Greeks from the end of March could again have difficulties to repay their then due debts.
“No cause, location too black to paint “
Bundesbank President Jens Weidmann said that the global economic prospects are better than the reputation. The growth in the world is expected to continue, albeit not in the speed as expected: “In the long run there is no need to paint the situation too black.” For China there is no indication of a steep decline. In the euro area, the economic recovery in this and next year is likely to continue.
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However, the G 20 will be ready to respond when risks to the global economic reality. “We will continue to examine policy options that could take advantage of the G-20, where appropriate, to support growth and stability”, they assured in their investigation. Of any new stimulus packages, as in Shanghai rejected Finance Minister Wolfgang Schäuble again, however, there is no question. The monetary policy alone could “not lead to sustainable growth,” reads the statement. You will however continue to support the economy. Even with the financial policy will pursue this objective, the G-20 countries. The control and government spending should be as growth-friendly as possible and improve the conditions for investment.
The participants renewed their commitment to the reform objectives of its summit in 2014 in Brisbane, Australia. After that should be completed within five years, an increase of two per cent growth path with an abundance of reform measures the growth around the world. However, just half the time promised more than 800 national reform measures are currently been implemented, as reported from the G-20 groups.
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