The G20 will use “all political tools” to boost growth – radiofórmula

24 July 2016

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

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the largest economies in the world will work to support global growth and better share the benefits 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 financial markets throughout the negotiations in the coming years, Hammond said after a meeting of finance ministers and central bankers from the group of twenty major economies in Chengdu city in southwest China.

“what 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, he added another uncertainty to the global economy, which is undergoing a “weaker than desirable” growth. 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 policy tools -monetarias, fiscal and structural individually and collectively to achieve our goal of strong, sustainable, balanced and inclusive “growth.

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

NEED tO BOOST gROWTH

While in previous meetings of CFOs G20 monetary policy had occupied a prominent place, governor of the Bank of France, François Villeroy de Galhau, said this time had been discussed recently and that the talks focused instead on 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 agree because recovery global economy 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 “said an official at the Japanese Finance Ministry. “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.

Reuters