Finance officials promise to shore up sagging growth

Finance officials of the world’s biggest economies promised Saturday to use “all tools” to shore up sagging global growth and to avoid devaluing their currencies to boost exports, but made no pledges of joint action.
Finance ministers and central bankers of the Group of 20 rich and developing countries tried to reassure jittery financial markets that the global economy is healthy, though they acknowledged in a statement that they “need to do more” to boost growth.
The declaration following a two-day meeting promised “growth-friendly” tax and spending policies. The governments pledged to press ahead with previously promised reforms aimed at making their economies more efficient and productive.
“We agreed to use all tools — monetary, fiscal and structural — to boost growth,” China’s finance minister, Lou Jiwei, said at a news conference.
What each country does will be dictated by its circumstances, Lou said. He said some can afford stimulus while others where debt is high have to move faster on structural economic reforms.
Companies and investors were looking to the Shanghai meeting for reassurance and action. But leaders from the United States, China, Europe and elsewhere had tried to squelch expectations that it would produce specific growth plans.
Global growth is at its lowest in two years and forecasters say the danger of recession is rising. The International Monetary Fund cut this year’s global growth forecast by 0.2 percentage points last month to 3.4 percent. It said another downgrade is likely in April.
The G-20 statement acknowledged that “vulnerabilities have risen” in the global economy against a backdrop that includes volatile capital flows, the European refugee crisis and the possibility of a British exit from the European Union. But it said that growth should continue at a “moderate pace” in advanced economies and “remains strong” in developing countries. AP