The International Monetary Fund (IMF) had downgraded its forecast for global growth this year and the following year by 0.1 per cent, marking down to 3.1 per cent this year and 3.4 the following year.
The Brexit had acutely heightened the risk of global economic uncertainty next to other complications cited by the G20 summit in Chengdu. The countries cited “geopolitical conflicts, terrorism and refugee flows” among the biggest problems the western world is facing today.
The G20 concluded that re-negotiations with the United Kingdom must happen and materialise quickly to minimise the possibility of uncertainties.
Finance Chiefs from the G20 said they would use all policy tools to aid the maintenance and growth of the global economy. This includes monetary easing, fiscal spending and structural change to boost growth.
The communique sent by the chiefs said the action can be taken individually and collectively.
They said it would be a priority to bring in those left out of economic prosperity to help resolve the global economic issues of today.
The embattled IMF managing director, Christine Lagarde – who faces prosecution in France on accusations of neglecting her duties as a government minister – abruptly cancelled a news conference after the meeting, citing scheduling conflicts.
“Lacklustre growth of the post-crisis era continues,” she said in a statement. “Structural reforms are particularly critical.”