The G20 will use “all political tools” to boost growth – Yahoo Finance Spain

By William Schomberg and Elias Glenn

CHENGDU, China (Reuters) – The world’s largest economies will work to support global growth and share best the benefits of trade, said Sunday senior officials after a meeting dominated by the impact of the departure of UK EU and fears the rise of protectionism.

Philip Hammond, new British finance minister, said uncertainty about the Brexit begin to decrease once UK expose a vision for its future relationship with Europe, something that could be clearer later in the year.

But there could be volatility in markets financial throughout the negotiations in the coming years, Hammond said after a meeting of finance ministers and bankers core group of twenty leading economies in Chengdu city in southwest China.

” what will begin to reduce uncertainty is when we are able to establish more clearly the type of agreement that we look forward with the European Union, “Hammond told reporters.

A statement issued by the ministers of the G20 at the end of the two-day meeting gathered the brexit, which dominated discussions, added another uncertainty to the global economy, which is undergoing a “weaker growth than desirable”. The statement added that the group members, however, were “in good position to proactively address the potential economic and financial consequences”.

“In light of recent events, we reiterate our determination to use all the political tools -monetarias, fiscal and structural individually and collectively to achieve our goal of strong, sustainable, balanced growth and inclusive “.

the International Monetary Fund lowered this week its forecast for global growth because of brexit.

NEED tO BOOST gROWTH

while in previous meetings of CFOs G20 monetary policy had occupied a prominent place, the governor of the Bank of France, François Villeroy de Galhau, said that this time he had been little discussion and that the discussions focused on change in growth.

Other officials echoed the same.

There was a broad consensus that the global economy needs more growth, told reporters the United States Secretary of the Treasury, Jack Lew, while Chinese Finance Minister Lou Jiwei said it was easier to get agree that the global economic recovery is still weak.

The specter of protectionism highlighted not only by the brexit, but also by the rhetoric of “America first” Republican presidential candidate Donald Trump, who has even spoken of withdrawing from trade agreements.

“not only brexit but several risks for low growth remain, and there was much debate about the need to monitor how they evolve events with terrorism, geopolitical risks and refugees” an official from the Japanese Finance Ministry said. “There was much concern about the spread of protectionist measures”.

In the statement, the G20 stressed “the role of trade liberalization policies and a system of strong global trade and insurance to promote growth global economic inclusive, and we will make more efforts to revitalize global trade and encourage investment “.

There was talk of stimulus as the” windfalls “(in English,” helicopter money “), governor of the Bank of Japan, which has repeatedly said that this is not an option we have on the table said.

this month has increased speculation that the Japanese authorities, who continue struggling to revive an economy plagued for decades by an anemic inflation, would resort to this measure by issuing perpetual bonds to repay public debt.

(Reporting by Jan Strupczewski, Gernot Heller, Tetsushi Kajimoto, David Lawder and Kevin Yao, written by John Ruwitch, translated by Jose Elias Rodriguez)