Global Economy Current Affairs - 2019

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G-20 Finance Ministers pledge to boost global economy

The Finance Ministers from the Group of 20 (G-20) major economies have pledged to boost the global economy, which is showing a weak recovery.

This announcement was made at the end of the two-day meeting of G-20 Finance ministers and Central Bank Governors meeting held in the Chinese city of Chengdu.

Key Highlights of meeting

  • G-20 Finance ministers expressed concern about Britain’s plan to leave the European Union and how Brexit will affect the world’s economy.
  • Member nations are well positioned to pro-actively to address the potential economic and financial consequences from such developments.
  • They vowed to reject trade protectionism, which became a prominent issue at the meeting.
  • They expressed the importance of reducing the excess production of steel that has led to a glut on the global market.

Brexit: IMF warns of repercussions for global economy

The International Monetary Fund (IMF) has warned that United Kingdom’s decision to leave the European Union (EU) has created significant uncertainty.

The uncertainty is likely to dampen growth in the near term, particularly in the UK, but with repercussions for Europe and the global economy.

Key facts

  • IMF predicts that macroeconomic and financial market impacts in the UK and EU due to Brexit will radiate outward across the globe.
  • The impacts of Brexit will lead to a rising level of uncertainty, both financial and possibly political in EU and UK.
  • IMF has urged policy makers to remain prepared to act to counter financial market turbulence and higher uncertainty to materially weaken the global outlook.
  • Prolonged periods of uncertainty and associated declines in business and consumer confidence due to Brexit would lead to lower growth.
  • IMF has urged policymakers in EU and UK to play key role in helping to reduce the uncertainty during this period.
  • It also has encouraged UK and EU to work together with a sense of collaboration in an effort to effect a predictable and smooth transition.
For more details: Brexit