WASHINGTON, Oct. 11 (Xinhua) -- Finance ministers and central bank governors from the Group of 20 (G20) on Friday pledged further actions to promote global economic growth and urged the United States to address debt ceiling as soon as possible.
The G20 officials wrapped up their discussions with a joint communique calling for the creation of "a robust environment for job-rich and inclusive growth."
"The global economy has continued, with the early signs of improvement in major developed economies but slower growth in many emerging markets," said the officials, who met on the sidelines of the International Monetary Fund (IMF) and the World Bank annual meetings.
"The current outlook presents challenges, including unacceptably high unemployment in many countries, and downside risks remain."
One of the principal challenges is volatility of capital flows that results from an eventual transition toward the normalization of monetary policy, said the communique.
Worries have been heightened since U.S. Federal Reserve Chairman Ben Bernanke in June laid out a tentative tapering plan to exit quantitative easing, which caused investors to withdraw money from emerging markets and restructure their portfolios, stoking volatility in global currency, bond and equity markets.
"We will ensure that future changes to monetary policy settings will continue to be carefully calibrated and clearly communicated," the G20 officials noted.
Meanwhile, they pledged cooperation to implement policies for growth and financial stability and to manage their spillover effects on other countries.
The IMF on Tuesday cut its growth forecast for the world economy to 2.9 percent for this year, 0.3 percentage points lower than its July projection. It also revised down its forecast for 2014 to 3.6 percent, 0.2 percentage points lower than its July estimate.
The IMF's global economy forecast for this year is "lower than the 3-percent psychological threshold, which shows that the world economy is confronted with big uncertainties," Chinese Vice Finance Minister Zhu Guangyao told Chinese reporters on Friday.
The G20 officials also discussed the U.S. government's debt ceiling and budget deficit.
"The U.S. needs to take urgent actions to address short-term fiscal uncertainties," they said in the communique.
U.S. Treasury Secretary Jacob Lew has told Congress that the federal government will reach its debt ceiling of 16.7 trillion U.S. dollars by Thursday, and failure to raise it would lead to catastrophic default.
IMF chief Christine Lagarde warned Thursday that if U.S. Congress fails to raise the debt ceiling, both the U.S. economy and the global economy will be seriously damaged.
Zhu of China shared the same view. The U.S. debt problem has become a global concern and the United States should listen to the global voices and policy suggestions from the IMF and the World Bank, he said.
Yi Gang, deputy governor of China's central bank, said the United States should have the wisdom to solve this problem as soon as possible. "The market doesn't like uncertainty. We watch this drama very closely."
The communique also stressed the urgent need for the ratification of the 2010 IMF Quota and Governance Reform, a package which included a shift in quotas to dynamic emerging markets as well as under-represented countries and a proposed amendment to reform the executive board.
"We all know what is at stake with the 2010 governance reform," Lagarde said Friday. In this more multi-polar world, in the next decade, the share of emerging and developing economies in global gross domestic product will increase from about half to nearly two-thirds, with a rapidly expanding middle class in those nations, noted the managing director.
However, the governance reform has been slowed down by the United States, which has not yet given the green light to the reform package.
The G20 members agreed to finalize a new quota formula and complete the 15th General Quota Review by January 2014, said the communique.