(VOVworld)- G20 Finance Ministers and Central Bank Governors have gathered at a meeting in Chengdu, China, to discuss ways to boost growth. They discussed Brexit’s impact on the world economy and global economic growth. In a joint communiqué released at the end of the meeting, they pledged to use all policy tools to support and promote global growth.

G20 countries determined to boost growth

In the joint community, G20 Finance leaders said that the global economic environment is challenging and downside risks persist, highlighted by fluctuating commodity prices and low inflation in many economies. Financial market volatility remains high, and geopolitical conflicts, terrorism, and refugee flows continue to complicate the global economic environment. The UK’s decision to quit the EU adds to the uncertainty in the global economy. G20 member countries, including the US, China, the UK and Germany admit that the global economic recovery is weaker than desirable. A few days prior to the meeting, the International Monetary Fund reduced its forecast for global growth to 3.1%, with Brexit being the main reason for the reduction. According to the IMF, uncertain trade relations between the UK and the EU are negatively impacting consumer trust.

In light of recent developments, G20 Finance Ministers and Central Bank Governors reiterated their determination to use all policy tools – monetary, fiscal and structural – individually and collectively to achieve their goal of strong, sustainable, balanced and inclusive growth.  They pledged to refrain from competitive devaluations, not to set exchange rates for competitive purposes, and to resist all forms of protectionism. UK Chancellor Philip Hammond said the UK and the EU are discussing ways to cope with the uncertainty of the global economy. The UK referendum will have economic and financial consequences for the global economy, but hopefully the UK will remain a close partner of the EU. G20 Finance Ministers and Central Bank Governors warned that increasing terror attacks are complicating the global economic environment. They pledged to attack all sources, techniques and channels of terrorist financing. With a weak and uncertain recovery of the global economy, G20 called on its members to resolutely implement their fiscal strategies to support the common growth objectives. The G20 Finance Ministers and Central Bank Governors’ Meeting was the last Ministerial Meeting before the G20 Summit to be held in Hangzhou, China in September. This will be a major forum on international economic cooperation programs to boost global economic stability and growth. The G20 plays an important role in the world economy. Its total foreign trade and GDP account for 80% and 85% respectively.