CHENGDU, July 24, 2016 (Xinhua) -- Participants pose for a group photo during a meeting of G20 finance ministers and central bank governors in Chengdu, capital of southwest China's Sichuan Province, July 24, 2016. (Xinhua/Jiang Hongjing)
CHENGDU, July 24 (Xinhua) -- G20 finance leaders on Sunday reiterated their determination to use all policy tools -- monetary, fiscal and structural -- to foster confidence and support growth.
"The global economic environment is challenging and downside risks persist, highlighted by fluctuating commodity prices, and low inflation in many economies," noted a communique issued after the G20 Finance Ministers and Central Bank Governors Meeting in southwest China's Chengdu.
In addition, the outcome of the referendum on UK membership of the EU adds to uncertainty in the global economy, said the communique.
To foster confidence, monetary policies will continue to support economic activity and ensure price stability, but monetary tools alone cannot lead to balanced growth, said the communique.
"We are using fiscal policy flexibly and making tax policy and public expenditure more growth-friendly," it added.
The nations reaffirm their previous exchange rate commitments, including refraining from competitive devaluations and not targeting exchange rates for competitive purposes.
"We will carefully calibrate and clearly communicate our macroeconomic and structural policy actions to reduce uncertainty, minimize negative spillovers and promote transparency," the communique said.
In the communique, the G20 economies commit to enhance communication and cooperation, and take effective steps to address the challenges of structural problems, including excess capacity in some industries, exacerbated by a weak global economic recovery and depressed market demand.
According to the communique, G20 members reaffirm commitment to promote investment with focus on infrastructure in terms of both quantity and quality.
