7/23/2018
G20 Communique
G20 Communique: "Short and medium term risks increased. For reducing the risks, dialogue should be increased and confidence has to be built up"
IMF President Lagarde: "In the short term, increasing risks are trade tensions, financial pressures in vulnerable economies and return of sovereign risks in some parts of Euro Zone. In countries with excess current account deficits, procyclical fiscal policies have to be avoided".
A Communique of 13 Articles signed by G20 members has been released following G20 Finance Ministers and Central Bank Governors Meetings held in Argentina last weekend and participated by Berat Albayrak, Minister of Treasury and Finance and Murat Çetinkaya, Governor of Central Bank on behalf of Turkey. In the Communiqué, it is noted that although global growtn maintained its power but became further unstable, short terms and medium term downward risks increased. Subject risks listed as financial fragilities, increasing commercial and geopolitical tensions, global unstabilities, inequality and slow structural growth, and noted, "We continue to monitor risks, to ease them and to respond if they became real". In the Communiqué, emerging market economies was noted to be still vulnerable against volatility and reverse capital flows in the markets vis-a-vis the changing financial conditions. Commitment was reiterated that G20 countries continued to use all available instruments for supporting strong, sustainable and inclusive growth. In the Communiqué, it is noted, "International trade and investments are key motors of growth, efficiency, innovation, employment and development. We reiterate here the conclusions reached by our leaders in Hamburg Summit and we see the necessity of increasing dialogue for decreasing risks and enhancing the confidence". IMF President Lagarde, "macroeconomic balances should keep up with changing outlook" International Monetary Fund (IMF) President Christine Lagarde has underlined in her closing speech of G20 that world economy, particularly in short term, was face to fact with risks like trade tensions, financial pressures on vulnerable economies, returns of sovereign risks in Euro Zone. Lagarde stated that; "Macroeconomic policies should adapt to the changing outlook, taking individual circumstances into account. In many countries, especially in those with excess current account deficits, this means avoiding procyclical fiscal policies to help put debt on a downward path. ... In response to financial volatility, exchange rate flexibility should continue to play a role in buffering shocks in emerging economies..." The whole statement of Lagarde is avaliable on IMF's website.
Annual Report
