G20 finance chiefs see slowing growth but remain optimistic

The G20 group of top world economies on Saturday said that global economic expansion was slower than had been expected but expressed confidence that a recovery would gain momentum. "Global growth falls short of our expectations. We have pledged to take decisive action to keep the economic recovery on track and we are confident the global economic recovery will gain speed,“ finance ministers and central bank chiefs said in a draft communique after their two meeting in Ankara. The economic supremos also vowed to "refrain from competitive devaluations and resist all forms of protectionism”, following controversy over China’s unexpected devaluation of the yuan last month.

China should allow its exchange rate to reflect underlying fundamentals, avoid persistent exchange rate misalignments, and refrain from competitive devaluation.

US Treasury Spokesperson.

Finance chiefs from the world’s leading economies broadly agree on the need to undertake structural reforms to boost productivity against a backdrop of loose monetary policy, Britain’s Chancellor George Osborne said on Saturday. Monetary policy has been a key focus at a meeting of finance ministers and central bankers from the Group of 20 in the Turkish capital Ankara this week, but several policy makers have also called for accelerated structural reforms. "I’m very clear, as indeed are many people sitting around the table, that countries need to live within their means,“ Osborne told Reuters.

G20 Business