G-20 officials see stable global growth

October 15, 2017

Washington- Top economic policymakers from the world's 20 major economies on Friday agreed that the global economy is on a stable growth path.

The finance ministers and central bank governors of the Group of 20 countries reaffirmed the need to implement appropriate monetary and fiscal policies and promote structural reform, such as easing employment regulations.

It is necessary to promote structural and fiscal reforms at a time when global growth is strong, German Finance Minister Wolfgang Schaeuble told a press conference after a two-day meeting of the G-20 officials in Washington.

Complacency should be averted, Schaeuble said. Germany currently holds the G-20's rotating presidency.

At a separate press conference, Bank of Japan Governor Haruhiko Kuroda, apparently referring to tensions over North Korea, said his country's economy has downside risks from developments in overseas economies.

No joint statement was issued at the meeting. From Japan, Kuroda and Vice Finance Minister for International Affairs Masatsugu Asakawa attended the meeting. Finance Minister Taro Aso was absent due to a parliamentary election later this month.

At the meeting, the Japanese officials said their country is unlikely to achieve its goal of producing a primary budget surplus by fiscal 2020, which ends in March 2021.

But they said Japan intends to continue efforts to restore fiscal health. They added that the BOJ will continue monetary easing in order to achieve its 2 percent inflation target.

The G-20 officials also exchanged views on moves by such central banks as the U.S. Federal Reserve toward shrinking their asset holdings that increased because of quantitative monetary easing following the global financial crisis of 2008.

Recognizing the possibility that the monetary policy shift may cause an outflow of money from emerging market economies and dampen economic growth, the officials agreed to cooperate in avoiding risks.

There were no discussions on trade imbalances and competitive currency devaluations, a senior Japanese finance official said, referring to topics that have drawn attention at the meetings of G-20 finance officials since the inauguration of US President Donald Trump in January. Jiji Press