G20 Countries Face Calls For Action To Boost Growth
Mohammad Ali (@ChaudhryMAli88) Published July 23, 2016 | 01:36 PM
CHENGDU, China,(APP - UrduPoint / Pakistan Point News - 23rd july,2016) - The International Monetary Fund (IMF) and the US urged G20 countries gathering on Saturday to do more to boost the slowing global economy, with Britain's vote to leave the European Union (EU) threatening to further derail growth. Central bank chiefs and finance ministers from the world's top 20 economies met in the southwestern Chinese city of Chengdu, and US Treasury Secretary Jacob Lew told journalists it was "a time of continuing uncertainty in the global economic outlook". "When you look at the political developments around the world, most recently the referendum in the United Kingdom, it really reinforces the importance of concentrating on shared growth," he said. Britain's new finance minister Philip Hammond was to deliver a message that his country was still "open for business", according to a statement from the Treasury in London. Just ahead of the meeting, the IMF called on key G20 nations to boost government spending. "Global growth remains weak, and downside risks have become more salient," the Washington-based lender said in a report.
"Growth could be even lower if the current increases in economic and political uncertainty in the wake of the 'Brexit' vote continue.
" In its most recent forecast, the IMF lowered its forecasts for global growth this year and next by 0.1 percent, to 3.1 percent and 3.4 percent respectively. The IMF wants advanced economies such as Germany and the United States to channel more public spending into infrastructure investment to help boost growth, an issue that has sparked divisions among G20 members. "There is an urgent need for G20 countries to step up their efforts to turn growth around," it said. But Berlin, in particular, has a long history of fiscal rigour and argues that government spending is ineffective at boosting growth, while monetary moves such as ultra-low interest rates and a flood of liquidity and credit are counterproductive. 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. 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". "Different countries are in different situations," he said, and governments that had room to support investment should do so, "even if one country or another disagrees".
Related Topics
Recent Stories
Students gather at GCU to express solidarity with Palestinians, Kashmiris
'Operation Beethoven': Dutch 2.5bn-euro charm offensive to keep ASML
Crackdown on Profiteers in Hyderabad: 23 Traders Fined
IIOJK authorities to bar Eid prayers at Srinagar Eidgah yet again
Ex-Gucci star Michele named Valentino creative director
Football: Italian Serie A table
Bulgaria thrown into fresh political turmoil as snap elections loom
Railways CEO shares plans for Eid trains, service upgrades through e-Kutchehri
04 diagnosed with dengue virus in RWP
DC for taking strict action against absent teachers in Nasirabad
Banks to open on March 30, 31 to facilitate tax collection
Lahore Police launch campaign to install safety wires on motorcycles
More Stories From World
-
'Operation Beethoven': Dutch 2.5bn-euro charm offensive to keep ASML
20 minutes ago -
Bulgaria thrown into fresh political turmoil as snap elections loom
21 minutes ago -
China-India hold meeting to discuss border affairs in Beijing
26 minutes ago -
French bill seeks to ban hair discrimination affecting black women
32 minutes ago -
China willing to work with Pakistan to enhance capability of tackling security challenges: Col Wu Qi ..
20 minutes ago -
Pakistan to bring perpetrator of Dasu terrorist attack to justice soon: Lin Jian
2 hours ago
-
Financial crisis at UK's biggest water supplier worsens
2 hours ago -
French parliament backs bill against hair discrimination affecting black women
2 hours ago -
Poland raids Russian spy network: security services
2 hours ago -
UK greenhouse gas emissions fell 5.4% in 2023: data
2 hours ago -
Haiti situation 'cataclysmic': UN
3 hours ago -
Profits fall for China's top chipmaker as sanctions bite
3 hours ago