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Finance officials confident of global growth

Washington: Finance officials from the world's major economies believe an ambitious goal to boost global growth by $2 trillion in the next five years is within reach despite a variety of threats, including rising tensions

India TV News Desk Updated on: April 13, 2014 18:22 IST

The US is raising the prospect of tougher sanctions if Russia attempts to annex parts of Eastern Ukraine. European officials have been hesitant to go further, worried about possible economic retaliation by Russia.

Also missing in the G-20 statement: a lengthy section from its February statement concerning the need for continued low interest rate policies by central banks.

Britain's chancellor of the exchequer, George Osborne, said, "I wouldn't read too much into that." He joked, "We're trying to keep the communique much shorter."

He noted that the Federal Reserve and the Bank of England were moving cautiously to reduce stimulus efforts as the US and British economies improve. Some critics have expressed concerns that there is a danger that central banks could move too quickly to reduce support before labor markets improve.

The US came in for criticism in the G-20 statement for the failure of Congress to approve funding for the IMF that's needed to put in place a reform program that the 188-nation lending agency adopted in 2010.

That program would give the IMF more resources to help countries in economic distress and provide greater voting rights to developing economies such as China.

The measure has stalled in Congress for years.

The G-20 officials said the IMF should explore other options, which weren't specified, if US approval doesn't come by year's end.

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