MEXICO CITY: Group of 20 nations are worried about a global downturn and want governments to do more to augment actions by central banks to revitalize the economy, Mexican Deputy Finance Minister Gerardo Rodriguez said yesterday.
Deputy finance ministers and central bankers of the G20, which comprises wealthy nations and leading emerging economies, concluded meetings in Mexico City yesterday ahead of a summit in November. Delegates said the global outlook had worsened since leaders met in June.
New measures to boost fragile economies from the Bank of Japan, the US Federal Reserve and the European Central Bank have helped to calm markets but were not enough, said Rodriguez, who spoke on the sidelines of the deputies' meeting, which he co-chaired.
Emerging market economies had not made a big issue at the meeting of a possible revival of "currency wars" following the new stimulus, he said, with more focus on economic woes.
"There's worry about the (economic) environment and there's a conviction that monetary policy by itself is not sufficient," Rodriguez told Reuters.
"It's good because the decisions of the ECB and the Fed have helped the stability of markets, but we need more government action."
"Currency wars" refers to the weakening of the US dollar and the strengthening of currencies of emerging economies, which makes their exports less competitive. The Fed's easier monetary policy has contributed to the dollar's weakening.
The Organization for Economic Cooperation and Development cut its growth forecasts for major developed economies earlier this month. The OECD said Europe was the main concern, but the United States also was at risk from future fiscal tightening.
G20 deputies urge govts to aid growth
