G20 ministers to use all tools to promote worldwide economic growth
CHENGDU, China—Global finance ministers redoubled their commitments to use all available policy tools to boost economic growth, wary that myriad headwinds risk pushing the world economy into a low-growth rut.
Among the most prominent of problems the Group of 20 largest economies cited is the U.K.’s surprise decision late last month to leave the European Union.
“In the future, we hope to see the U.K. as a close partner of the EU,” the G-20 finance ministers and central bankers said in their official communiqué after two days of talks.
The U.K. and EU delegations both agreed on the need to reduce global uncertainty surrounding Brexit, but appeared to differ on timing. While European officials urged London not to “waste time” in resolving the issue, U.K. finance minister Philip Hammond said his country will wait to formally notify Brussels of its departure until it is fully prepared for the complex exit negotiations.
Even then, global insecurity over the divorce is likely to continue, Mr. Hammond said. “Uncertainty will only end once the deal is done,” he said, adding that the Bank of England will in the mean time use all necessary monetary tools should this become necessary to stabilize financial markets.
The International Monetary Fund, which acts as economic counselor to the G-20, last week cut its growth outlook for the global economy, saying Brexit-fueled uncertainty will weigh on investment and consumer confidence. IMF economists and many G-20 finance chiefs are concerned that policy makers are relying too heavily on monetary policy to goose growth and are pushing each other to ramp up deep economic overhauls meant to boost productivity and step up budget stimulus where possible.
