G20 vows to work together to boost global economy

AP News
Posted: Sep 23, 2011 12:56 AM
G20 vows to work together to boost global economy

The Group of 20 leading advanced and emerging economies are vowing to work together to boost the struggling global economy and financial system.

The G-20 voiced the resolve in a statement, saying its finance ministers and central bank governors are "committed to a strong and coordinated international response to address the renewed challenges facing the global economy."

The statement came as global stock markets have plunged amid worries the world economy is heading back into recession. The U.S. economy is saddled with high unemployment, Europe is burdened by its sovereign debt crisis and growth in China is also slowing.

South Korea's Ministry of Strategy and Finance released the statement in Seoul on Friday. South Korea is a G-20 member.

The G-20 said the main challenges that need to be addressed are "heightened downside risks from sovereign stresses, financial system fragility, market turbulence, weak economic growth and unacceptably high unemployment."

The G-20, which has assumed the leading role in coordinating policy responses to the global economy since the financial crisis that began in September 2008, also vowed to shore up the world's banking system.

"We commit to take all necessary actions to preserve the stability of banking systems and financial markets as required," the statement said. The group will ensure that banks have adequate capitalization and sufficient access to funds, it said.

The G-20 also said it was committed to "supporting growth, implementing credible fiscal consolidation plans, and ensuring strong, sustainable and balanced growth."

The statement said the group was preparing a "bold" plan of action that it is working to have ready for the summit of G-20 leaders slated for Cannes in France in November.