G20 to use "all policy tools" to support growth

TOKYO, July 24 (KUNA) -- Group of 20 (G20) finance leaders on Sunday reiterated their determination to use all policy tools -- monetary, fiscal and structural -- to foster confidence and support growth, China's official Xinhua News Agency reported.
"The global economic environment is challenging and downside risks persist, highlighted by fluctuating commodity prices, and low inflation in many economies," noted a communique issued after the G20 Finance Ministers and Central Bank Governors Meeting in southwest China's Chengdu, according to the report.
In addition, the outcome of the referendum on Britain's membership of the European Union (EU) adds to uncertainty in the global economy, said the communique.
To foster confidence, monetary policies will continue to support economic activity and ensure price stability, but monetary tools alone cannot lead to balanced growth, said the document. "We are using fiscal policy flexibly and making tax policy and public expenditure more growth-friendly," it added.
The nations reaffirm their previous exchange rate committments, including refraining from competitive devaluations and not targeting exchange rates for competitive purposes.
"We will carefully calibrate and clearly communicate our macroeconomic and structural policy actions to reduce uncertainty, minimize negative spillovers and promote transparency," the communique said. The G20 economies are also committed to enhance communication and cooperation, and take effective steps to address the challenges of structural problems, including excess capacity in some industries, exacerbated by a weak global economic recovery and depressed market demand. The G20 members reaffirmed commitment to promote investment with focus on infrastructure in terms of both quantity and quality.
The G20 is made up of the finance ministers and central bank governors of 19 countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the UK, the US. The remaining seat is held by the European Union. (end) mk.msa