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WORLD NEWSMonday 29 February 2016
Shanghai:
Global finance officials promise to shore up sagging growth
JOE McDONALD Eurogroup President Jeroen Dijsselbloem, center, of the Netherlands, and EU Economic and growth should continue at
PAUL TRAYNOR Financial Affairs, Taxation and Customs Commissioner Pierre Moscovici, right, of France talk to a “moderate pace” in ad-
Associated Press the media before the start of the G20 Finance Ministers and Central Bank Governors Meeting at vanced economies and
SHANGHAI (AP) — Finance the Pudong Shangri-la Hotel in Shanghai, China. “remains strong” in devel-
officials of the world’s big- oping countries.
gest economies promised (Rolex Dela Pena/Pool Photo via AP) The governments promised
Saturday to use “all tools” to avoid “competitive de-
to shore up sagging global said some can afford stimu- expectations that it would other downgrade is likely in valuations” of their curren-
growth and to avoid de- lus while others where debt produce specific growth April. cies to boost exports — a
valuing their currencies to is high have to move faster plans. The G-20 statement ac- key concern of global mar-
boost exports, but made on structural economic re- Global growth is at its low- knowledged that “vulner- kets following turmoil over
no pledges of joint action. forms. est in two years and fore- abilities have risen” in the China’s yuan.
Finance ministers and cen- Companies and investors casters say the danger global economy against A surprise change in Au-
tral bankers of the Group were looking to the Shang- of recession is rising. The a backdrop that includes gust in the mechanism Bei-
of 20 rich and developing hai meeting for reassur- International Monetary volatile capital flows, the jing uses to set its exchange
countries tried to reassure ance and action. But lead- Fund cut this year’s global European refugee crisis rate prompted fears that
jittery financial markets ers from the United States, growth forecast by 0.2 per- and the possibility of a Brit- the yuan might be weak-
that the global economy China, Europe and else- centage points last month ish exit from the Europe- ened to support struggling
is healthy, though they where had tried to squelch to 3.4 percent. It said an- an Union. But it said that Chinese exporters. Despite
acknowledged in a state- official denials, repeated
ment that they “need to Friday by Chinese central
do more” to boost growth. bank governor Zhou Xiao-
The declaration following chuan, those expectations
a two-day meeting prom- have driven an outflow of
ised “growth-friendly” tax capital that spiked to a re-
and spending policies. The cord $135 billion in Decem-
governments pledged to ber.
press ahead with previous- “We will not target our ex-
ly promised reforms aimed change rates for competi-
at making their economies tive purposes,” the G-20
more efficient and produc- statement said.
tive. The Chinese hosts wanted
“We agreed to use all the meeting to promote
tools — monetary, fiscal their campaign for a big-
and structural — to boost ger voice in managing
growth,” China’s finance trade and finance. In-
minister, Lou Jiwei, said at stead, the communist gov-
a news conference. ernment had to scramble
What each country does to defend its reputation
will be dictated by its cir- for competence following
cumstances, Lou said. He stock market and currency
turmoil.q
