G-20: Five Ways to Spark Growth

IMF Blog, July 21, 2016

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G-20: Five Ways to Spark Growth

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Bibliographic details

• Authors: iMFdirect
• Published: July 21, 2016

Overview

• Publication: iMFdirect
• Date: July 21, 2016
• Core message: Weak and fragile global growth requires a broad-based policy effort to contain risk and reinvigorate growth in both the short and longer term.

Current global outlook and risks

• IMF update to the global economic outlook expects global growth at 3.1 percent and 3.4 percent in 2016 and 2017, respectively.
• The global outlook was revised downward relative to April estimates, reflecting increased economic, political, and institutional uncertainty.
• The U.K. referendum (“Brexit”) has set back prospects and increased uncertainty.
• Additional concerns: potential for social tensions, risk of protectionism, and increasing geopolitical risks that could threaten the global recovery.

Five main areas to rev up growth (IMF staff note for the G-20)

• Reducing uncertainty around “Brexit” and its repercussions, through a smooth transition to a new relationship between the United Kingdom and the European Union that as much as possible preserves gains from trade.
• Implementing a stronger and more balanced set of economic policies that exploits policy synergies of well-sequenced structural reforms with growth friendly fiscal policy and continued monetary support.
• Addressing the post-crisis debt overhang that saddles advanced economies and the rising corporate debt that burdens many emerging economies.
• Lifting long-term growth and making it more inclusive, through structural reforms by making workers and business processes more productive.
• Reinvigorating trade, making sure that the gains from trade are widely shared, and reviving the spirit of multilateralism, including to address geopolitical spillovers that could threaten the global recovery.

G-20 growth strategy emphasis

• The G-20 growth strategy stresses the need for more inclusive and sustainable growth.
• The bottom line: strong global growth will not return without decisive policy action.

Cross-sector — iMFdirect, July 21, 2016

Content in this bundle

• G-20 Finance Ministers and Central Bank Governors’ Meetings; July 23–24, 2016; Chengdu, China
  • G-20 Finance Ministers and Central Bank Governors’ Meetings; July 23–24, 2016; Chengdu, China (Markdown version)
  • G-20 Finance Ministers and Central Bank Governors’ Meetings; July 23–24, 2016; Chengdu, China (PDF)

References

• update