Finance Ministers and Central Bank Governors pose for a
group photo in Chengdu in Southwestern China's Sichuan
province, Sunday, July 24, 2016. Finance Ministers and
Central Bank Governors of the 20 most developed economies
met in the southwestern city of Chengdu ahead of a G20
leaders meeting in September hosted by China. Participants
in the front row are, from left: Britain's Chancellor of the
Exchequer Philip Hammond, World Bank President Jim Yong Kim,
an unidentified member, Turkey's Deputy Prime Minister
Mehmet Simsek, China's Finance Minister Lou Jiwei, China's
People's Bank of China Governor Zhou Xiaochuan, Germany's
Federal Minister of Finance Wolfgang Schauble, International
Monetary Fund Managing Director Christine Lagarde and OECD
Secretary-General Angel Gurria
Global finance officials promised Sunday to protect the world
economy from the shockwaves of Britain's European Union referendum
and to boost sluggish growth.
Envoys of the
Group of 20 major economies also rejected trade protectionism, an
issue that has risen in prominence as U.S. Republication
presidential candidate Donald Trump stirs unease with talk about
restricting access to American markets.
The gathering of
finance ministers and central bank governors from the United
States, China, Britain, Germany and other governments took place
against a backdrop of a weak global recovery that was rattled by
Britain's vote to leave the EU and trade tension over Chinese
exports of low-priced steel.
The British vote
"increased global economic uncertainty," said a joint
statement by the officials, who were meeting in Chengdu in western
members are ready to actively respond to the potential economic
and financial impact brought by the British referendum," said
the statement. "In the future, we hope to see Britain as a
close partner of the EU."
On Friday, the
director-general of the International Monetary Fund, Christine
Lagarde, called for quick action to end uncertainty about the
British-EU split. She said that turmoil prompted the IMF to cut
its forecast of this year's global growth by 0.1 percentage point.
statement promised to use "any and all policy
instruments" to achieve "strong, sustainable, balanced
and inclusive growth objectives." The governments promised to
strengthen communication and cooperation but announced no joint
action, as some financial traders had hoped.
taking action to boost confidence and promote growth," said
Secretary Jacob Lew said ahead of the meeting that it was not the
right time for coordinated action similar to that in 2008-09
following the global crisis because economies face different
the general sense was that the outlook remains uncertain,"
Lew said in a statement Sunday. "There is now broad consensus
that what the global economy needs is growth — not austerity —
and the discussions here have focused on how best to achieve that
The envoys also
pledged to avoid devaluing currencies to boost exports.
oppose all forms of protectionism," their statement said.
Trump, who was
named the Republican Party's nominee for president on Friday,
setting up a race with presumptive Democratic nominee Hillary
Clinton, has called for measures to protect American industry,
though he has given no details.
of the G-20 economies are due to meet in September in Hangzhou,
southwest of Shanghai.
statement also cited the importance of reducing excess production
capacity in steel and other industries that has led to a glut of
supply and depressed prices. That is a source of tension between
China and trading partners that accuse Beijing of exporting steel
at improperly low prices, hurting competitors and threatening a
loss of jobs.
announced plans to shrink its coal and steel industries,
eliminating millions of jobs. The United States has imposed
anti-dumping duties on Chinese steel and European officials have
launched trade probes.
U.S. interest in seeing progress on that during a meeting with his
Chinese counterpart, Lou Jiwei, according to Lew's department.