The world leaders that began their 2-day G20 meeting on Saturday focused their discussions on increasing international economic growth in their efforts to counter growing global dissatisfaction that has intensified since Britain's decision to leave the European Union.
The finance ministers and central bankers that gathered in China's southwestern city of Chengdu pointed to recent proposals by U.S. Republican presidential candidate Donald Trump to pull out of trade agreements and his adoption of an “American first” position as a major concern for global economic expansion.
Share Growth Benefits
The participating leaders also emphasized the need for sharing the benefits of growth more broadly within countries to promote inclusiveness and for the G-20 countries to use all policy tools, including monetary and fiscal policies as well as structural reforms, to boost efficiency.
According to Chinese Finance Minister Lou Jiwei , "G-20 countries should increase policy communication and coordination, form policy consensus and guide market expectations, making monetary policy more forward-looking and transparent and increase the effectiveness of fiscal policy."
This is the first G-20 meeting since Brexit and the International Monetary Fund this week has already cut its global growth forecasts because of the vote, saying that uncertainty over Britain's future trade relationship with Europe will stall investment and sap consumer confidence.
One business activity index posted its biggest drop in its 20-year history on Friday Britain's and new finance minister, Philip Hammond told reporters that the UK could reset fiscal policy if necessary.
U.S. Treasury Secretary Jack Lew met separately with Japanese Finance Minister Taro Aso and reiterated the need for G-20 members to refrain from competitive devaluations. The yen strengthened to around 100 to the dollar after the Brexit vote but has since eased back to around 106 per dollar.