Photographer: Qilai Shen/Bloomberg

G-20 Pledges to Reduce Excessive Imbalances in Global Economy

  • OECD to lead forum on steel overcapacity, list tax havens
  • Leaders issue communique after two-day summit in Hangzhou

Group of 20 leaders pledged to use all available tools to help prop up global growth that’s weaker than it should be while avoiding competitive currency devaluations.

Monetary policy alone can’t lead to balanced growth, and member nations are determined to use all monetary, fiscal, structural tools, the G-20 said in its final communique Monday after two-day leaders summit in Hangzhou, China. It said the Organisation for Economic Cooperation and Development will lead a "global forum" on steel overcapacity and identify uncooperative tax havens.

China, which has been criticized this year for its excess capacity in industries such as steel and coal as it hosts the summit for the first time, is seeking a bigger role on the world stage while also defending against rising anti-trade sentiment from the U.S. to Europe. President Xi Jinping said in a speech after the close of the proceedings that member nations committed to combat protectionism and revive international trade and investment.

U.S. President Barack Obama said he plans to advocate for trade and "cut through the noise" of the election season. “We focused on making sure that businesses can compete fairly,” he said at a press briefing after the summit. “We’ve got more work to do together to keep the global economy growing.”

— With assistance by Gregory Viscusi, and Jeff Kearns

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