G-20 commits to rebuilding confidence in financial markets

Last Updated: Tuesday, November 6, 2012 - 17:14

Mexico City: World's top and emerging economies including India have resolved to reduce risks in international financial market and contribute to faster global recovery.

At the end of their two-day meeting which concluded here on Monday, Finance Ministers of G-20 nations including P Chidambaram from India, said "global growth remains modest and downside risks are still elevated..."

In their communique, the G-20 Finance Ministers and central bank governors said the risks to global economy remain high due to possible delays in the implementation of recent policy announcements of bond purchases in Europe and potential sharp fiscal tightening in the US.

Weaker growth in some emerging markets and additional supply shocks in a few commodities were also issues of concern to the Finance Ministers and central bank chiefs of the leading countries. For India increase in global crude oil prices has been posing problems.

India too has seen sharp slowdown in growth as its GDP grew at 6.5 percent in 2011-12, a nine-year low. The growth prospects for the current financial year also seem dim with the Reserve Bank of India already lowering the outlook to 5.8 percent from its earlier projection of 6.5 percent.

The G-20 is club of rich and emerging economies including the US, Europe, Russia, China, Brazil and India.

The main focus in the period ahead, it said, "will be to rebuild confidence and to reduce risks and volatility in international financial markets; contribute to a faster pace of economic recovery and job creation, and promote the foundations for strong, sustainable, and balanced growth.

"We are firmly committed to open trade and investment, expanding markets and resisting protectionism in all its forms", it added.


First Published: Tuesday, November 6, 2012 - 17:13

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