News / Economy

G20 to Say Economy Recovering, Crisis Not Yet Overcome

G20 summit participants pose for the family picture in St.Petersburg, Sept. 6, 2013.
G20 summit participants pose for the family picture in St.Petersburg, Sept. 6, 2013.
Reuters
The Group of 20 will say in its summit communique that the global economy is improving but it is too early to declare an end to crisis, a Russian official involved in its drafting told Reuters on Friday.

Leaders of the G20 - which groups developed and emerging economies accounting for 90 percent of the world economy and two-thirds of its population - will stick closely to the statement issued by finance ministers in July.

That demanded changes to monetary policy must be “carefully calibrated and clearly communicated”.

New elements will refer to a growth initiative proposed by Australia, which assumes the G20 chair next year, a German proposal to tighten regulation of so-called 'shadow banking' and extending a deadline on reining in trade protectionism.

“Compared to the start of the Russian presidency there has definitely been a shift in the assessment, and that is reflected in the leaders' communique,” Andrei Bokarev, head of the Finance Ministry's international department, said in an interview.

“But it's definitely too early to say that the crisis has been overcome and that it will be easy from now on.”

Emerging and developed G20 powers struggled to find common ground over the turmoil unleashed by the prospect of the United States reducing a flood of dollars to the world economy. Still, they managed to produce a “balanced” document, Bokarev said.

The G20, which united in response to global crisis in 2009, now faces a U.S. economy pushing ahead, with developing economies facing blowback from the looming 'taper' of the Federal Reserve's monetary stimulus.

Whatever form of words the G20 comes up with, for the markets it will pale in comparison to the monthly U.S. jobs report, due later, which will go a long way to dictating whether the Fed acts this month or not.

Nascent signs of a turnaround in Europe after a sovereign debt crisis and slump in parts of the euro zone kept the region's leaders out of the firing line for the first time in three years.

“I want to tell you, at this G20 we were no longer the focus of attention,” said European Commission President Jose Manuel Barroso.

Difficult talks

The summit debate on the health of the world economy, chaired by Russian President Vladimir Putin on Thursday evening, was difficult and reflected concerns about a growth slowdown in the developing world.

“The most difficult and time-consuming discussions related to the evaluation of the situation of global economy,” Bokarev said on the sidelines of the two-day summit in St. Petersburg.

The BRICS group of large emerging economies - Brazil, Russia, India, China and South Africa - agreed to chip $100 billion into a currency reserve pool that could help counter a possible balance-of-payments crisis.

But the facility is a drop in the ocean compared to the trillions traded in foreign exchange daily and it is likely to be next year at the earliest before it is finalized.

China and Russia - which both run external surpluses - chided India on Thursday for failing to tackle a yawning current account deficit that has exposed the rupee to a brutal selloff amid a broader flight to the U.S. dollar.

Indian Prime Minister Manmohan Singh won some support from Japan on Friday, as the two countries said they would expand a bilateral currency swap facility to $50 billion from $15 billion, strengthening the rupee's defenses.

The prospect that the Fed may rein in its expansive monetary policies as soon as this month has vexed emerging economies that had enjoyed rapid growth thanks to a flood of cheap dollars into the world economy.

“The communique of course reflects that developed economies' share in global economic growth will be larger than that of emerging markets,” Bokarev said. “The communique states that developing economies are making a big contribution to global growth, but at the same time it is obvious there is a slowing trend.”

You May Like

Official: S. Sudan President, Rebel Leader to Meet in Tanzania

Talks part of effort to end conflict in country that has left more than 10,000 people dead, displaced more than 1.5 million others More

Dutch Deny Link to Mystery Submarine Off Sweden

Netherlands denies Russian claim that 'foreign vessel' photographed in waters off Sweden could be Dutch More

China Boosts Efforts to Help Afghan, Regional Stability

Observers say China’s increased regional involvement are due to concerns that Afghan instability and the presence of anti-China militants in Pakistani border areas could fuel Xinjiang troubles More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
China Political Meeting Seeks to Improve Rule of Lawi
X
William Ide
October 20, 2014 10:23 AM
China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.
Video

Video Latinas Converting to Islam for Identity, Structure

Latinos are one of the fastest growing groups in the Muslim religion. According to the Pew Research Center, about 6 percent of American Muslims are Latino. And a little more than half of new converts are female. VOA’s Carolyn Presutti travelled to Miami, Florida -- where two out of every three residents is Hispanic -- to learn more.
Video

Video Nigeria Agrees to Cease-Fire With Boko Haram

Islamist militant group Boko Haram and the Nigerian government have agreed to a cease-fire. The Nigerian government issued an order Friday, telling all military chiefs "to comply with the cease-fire agreement in all theaters of operations. Why now and the significance of the agreement are questions on some people’s minds. VOA's Mariama Diallo reports.
Video

Video Kobani Fighting Sends 400,000 Refugees to Turkey

The offensive by Islamic State militants against the northern Syrian city of Kobani has caused hundreds of thousands of residents to flee to Turkey. They receive help from Turkish authorities and individuals, but say much more is needed. VOA’s Scott Bobb reports from the town of Suruc a few kilometers from the border.
Video

Video Exclusive: American Joins Kurds' Anti-IS Fight

The United States and other Western nations have expressed alarm about their citizens joining Islamic State forces in Syria and Iraq. In a rare counterpoint to the phenomenon, an American has taken up arms with the militants' Syrian Kurdish opponents. Elizabeth Arrott has more in this exclusive profile by VOA Kurdish reporter Zana Omer in Ras al Ayn, Syria.
Video

Video South Korea Confronts Violence Within Military Ranks

Every able-bodied South Korean male between 18 and 35 must serve for 21 to 36 months in the country’s armed forces, depending upon the specific branch. For many, service is a rite of passage to manhood. But there are growing concerns that bullying and violence come along with the tradition. Reporter Jason Strother has more from Seoul.
Video

Video Comanche People Maintain Pride in Their Heritage

The Comanche (Indian nation) once were called the “Lords of the Plains,” with an empire that included half the land area of current day Texas, large parts of Oklahoma, New Mexico, Kansas and Colorado.The fierceness and battle prowess of these warriors on horseback delayed the settlement of most of West Texas for four decades. VOA’s Greg Flakus reports from Lawton, Oklahoma, that while their warrior days are over, the 15,000 members of the Comanche Nation remain a proud people.
Video

Video Turkey Campus Attacks Raise Islamic Radicalization Fears

Concerns are growing in Turkey of Islamic radicalization at some universities, after clashes between supporters of the jihadist group Islamic State (IS) or ISIS, and those opposed to the extremists. Pro-jihadist literature is on sale openly on the streets of Istanbul. Critics accuse the government of turning a blind eye to radicalism at home, while Kurds accuse the president of supporting IS - a charge strongly denied. Henry Ridgwell reports from London.
Video

Video Syrian Defector Leaks Shocking Photos of Torture Victims

Shocking photographs purporting to show Syrian torture victims are on display at the U.S. Holocaust Memorial Museum in Washington. The museum says the graphic images are among thousands of photographs recently smuggled out of Syria by a military policeman-turned-defector. As VOA reporter Julie Taboh reports, the museum says the photos provide further evidence of atrocities committed by the government of Syrian President Bashar al-Assad against its own people.
Video

Video Drought-Stricken California Considers Upgrading Water System

A three-year drought in California is causing a water shortage that is being felt on farms and cities throughout the state. As VOA's Mike O’Sullivan reports, water experts, consumers and farmers say California needs to make changes to cope with an uncertain future.
Video

Video TechShop Puts High-tech Dreams Within Reach

Square, a business app and card reader, makes it possible to do credit card transactions through cell phones. But what made Square possible? VOA’s Adrianna Zhang and Enming Liu have the answer.

All About America

AppleAndroid

World Currencies

EUR
USD
0.7798
JPY
USD
106.41
GBP
USD
0.6203
CAD
USD
1.1242
INR
USD
61.430

Rates may not be current.