G20 pass resolution, recognize major challenges
Two-day G20 summit saw discussing major problems ahead of global economies and finding solutions
Saint Petersburg: The two-day G20 summit here saw discussing major problems ahead of global economies and finding solutions. The group of countries passed a resolution and declared, “We will refrain from competitive devaluation and will not target our exchange rates for competitive purposes. We will resist all forms of protectionism and keep our markets open,” the declaration said.
The Summit also reiterated the countries’ commitment to move more rapidly toward more market determined rate systems and exchange rate flexibility to reflect underlying fundamentals and avoid persistent exchange rate misalignment.
During the sessions, the leaders identified eight main challenges to the global economy. They are::
1. Weak growth and persistently high unemployment, particularly among youth, and the need for more inclusive growth in many economies
2. Financial market fragmentation in Europe and the decisive implementation of banking union
3. Slower growth in some emerging market economies, reflecting in some cases the effect of volatile capital flows
4. Tighter financial conditions and commodity price volatility
5. Domestic structural challenges
6. Insufficient levels of private investment in many countries, in part due to continuing market uncertainties, as well as internal rigidity.
The declaration said that the leaders have built their previous actions with new measures as set out in the St Petersburg Action Plan to address these challenges and to place the global economy on a stronger, more sustainable and balance growth path.