The G20 adopts an optimistic tone, but Greece worries her high … – Yahoo Finance Spain

By Jan Strupczewski and Randall Palmer

WASHINGTON (Reuters) – The G-20, the group of the 20 largest economies in the world, adopted on Friday optimistic about the prospects for global growth tone, but officials were concerned by the fact that Greece’s inability to reach an agreement with its creditors could derail the tentative recovery in Europe.

In a statement after a two-day meeting, the finance ministers of the G-20 central bankers and praised the positive economic signs in rich economies, but lamented the weakness in emerging markets.

“The risks are more balanced global economy since the last meeting, “the officials said in the statement.

“The outlook in advanced economies, particularly in the euro area and Japan, have recently improved, while the US and the UK continue to post solid growth, which could support a global recovery more firm “, he said.

Still, the group of developed countries and emerging markets, which represent about 80 percent of global economic output, warned about the risks.

“There are significant challenges, including volatility in exchange rates and low inflation prolonged, sustained internal and external imbalances, high public debt and geopolitical tensions,” the statement said.

While Greece was not mentioned by name in the statement, was one of the topics of senior officials present in Washington for the meeting of G-20 and the spring meetings of the International Monetary Fund (IMF) and World Bank .

“The atmosphere is noticeably darker than the last international match,” said British Finance Minister George Osborne told reporters, adding that discussions on Greece “dominated” all meetings.

“It is now clear to me that a mistake or miscalculation on either side could easily lead to European economies to the type of hazardous situation which saw three to four years ago,” he said.

Athens is seeking an agreement with the IMF and the EU to ease the terms of a bailout that imposed creditors. Until an agreement is not reached, the bailout funds that Greece urgently needed, are suspended.

However, progress in negotiations has been slow and Greece could run out of funds before the debt payments must meet next month.

“It is important that in the coming days we achieve a breakthrough, that the process gains momentum,” said the director of the IMF European Department, Poul Thomsen, a journalists.

“There must be a comprehensive package and it will clearly several weeks or more of discussions,” he said.

Concerns about Greece contributed to falls in prices of the shares in Europe and Wall Street.

While the G20 offered a tone of cautious optimism about the global economy, highlighted a risk of financial volatility as the US Federal Reserve prepares to raise interest rates.

“In an environment of divergent monetary policies and increased volatility in financial markets, political decisions should it be carefully calibrated and clearly communicated to minimize the effects of negative infections,” said the statement said.

The statements show the continuing concern about possible problems in the economy and the financial market as the Fed moves toward a rate hike, and the European Central Bank and the Bank of Japan kept the tap monetary policy fairly open.

The main concern focuses on emerging markets, they have been harassed by capital outflows as investors bet higher interest rates in the United States.