* The impact of Brexit dominated the meeting of Chengdu * The G20 will use “all the levers” to help growth * It recognizes that growth must be widely shared by William Schomberg and Elias Glenn CHENGDU, China, July 24 (Reuters) – Finance ministers and central bankers of the Group of 20 leading economies in the world Sunday renewed their commitment to support growth and to better share the fruits, after a meeting dominated by the impact the exit of Britain from the European Union and by the risk of protectionism. Philip Hammond, Britain’s new finance minister, assured his colleagues gathered in Chengdu, Sichuan province, the uncertainties around the “Brexit” begin to fade after London has presented his vision of relations future with Europe in the coming months he hopes. But he acknowledged that volatility in financial markets could persist during the negotiations that will last several years. “The uncertainty will start to fall when we are able to say clearly what kind of arrangement we plan with the European Union,” he told the press. “If our EU partners to respond positively to such a vision – but it will obviously be subject to negotiation – then we can agree on where we want to go (…) and I hope it will send a reassuring signal to business and markets. ” In the communiqué issued at the end of the two-day meeting, the G20 ministers recognize that Brexit which dominated discussions had added uncertainty to the global economy whose growth is “lower than what would be desirable. ” However, they consider the Member States “well placed to address proactively the potential economic and financial consequences.” “In light of recent developments, we reiterate our determination to use all policy levers – monetary, budgetary and structural – individually and collectively to achieve our goal of a strong, sustainable, balanced and inclusive,” the communicated. On Tuesday, the IMF has revised down its forecast for global growth because of uncertainties Brexit. While monetary policy had dominated past meetings of central bankers of the G20, the subject has been little discussion this time and the discussions focused on growth, said Governor of the Bank of France François Villeroy de Galhau. The US Treasury Secretary, Jack Lew, reported a broad consensus around the need for stronger growth. Easy to reach consensus, has mischievously noted Chinese Minister Lou Jiwei, since the current growth is too low. Overcapacity, A GLOBAL PROBLEM The specter of protectionism, not only awakened by the Brexit but also by the campaign promises of the Republican candidate Donald Trump in the US, was also invited to the G20 meeting. “There are not only the Brexit but also other risks to growth, and there has been much debate on the need to be alert to other developments such as terrorism, geopolitical risks or stream refugees, “said an official of the Japanese Ministry of Finance. “Many concerns have been expressed about protectionism.” In the communiqué, the G20 stressed “the role of free trade and a strong international and safe trade system to promote an inclusive global economic growth,” that is to say generating a high-employment, and he is committed to producing new efforts to “revitalize global trade and increase investment.” He acknowledges the difficulties caused by industrial overcapacity, particularly in the steel sector and the negative implications for trade and workers. Overcapacity “is a global problem that requires collective responses,” the statement said. “We also recognize that subsidies and other support provided by governments or public institutions can cause market distortions and contribute to situations of overcapacity, so it requires attention,” he added. The risk of competitive devaluations were also discussed and the ministers again pledged not to use it, but this, although mentioned in the press, seems to have held an important place in the discussions that the previous G20 meeting in February in Shanghai. Taro Aso, Japanese Minister of Finance, has however publicly worried about the depreciation of the Chinese yuan. “Whether up or down, too rapid movement of the yuan are not desirable,” Has he told reporters. “Besides the weakening of the yuan is not necessarily good for the Chinese economy: it may be good for exports but adds the cost of imports.” Haruhiko Kuroda, the Governor of the Bank of Japan has ensured that participants had not discussed an appeal to the “helicopter money”, colorful term to describe the direct distribution of money to households to stimulate growth and inflation. “This G20 meeting did not discuss things considered the helicopter currency, and this helicopter currency expression has also not been used at all,” he has said, sweeping again the speculation about a possible claim of Japan to this extreme measure. (With Jan Strupczewski, Gernot Heller, Tetsushi Kajimoto David Lawder and Kevin Yao, Julie Carriat and Veronique Tison for the French service)
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