Global growth appears to be stabilizing, and is generally projected to pick up moderately later this year and into 2020. This recovery is supported by the continuation of accommodative financial conditions, stimulus measures taking effect in some countries, and one-off factors dissipating. However, growth remains low and risks remain tilted to the downside. Most importantly, trade and geopolitical tensions have intensified. We will continue to address these risks, and stand ready to take further action.
We reaffirm our commitment to use all policy tools to achieve strong, sustainable, balanced and inclusive growth, and safeguard against downside risks, by stepping up our dialogue and actions to enhance confidence. Fiscal policy should be flexible and growth-friendly while rebuilding buffers where needed and ensuring debt as a share of GDP is on a sustainable path. In line with central banks’ mandates, monetary policy should ensure that inflation remains on track toward, or stabilizes around targets. Central bank decisions need to remain well communicated. Continued implementation of structural reforms will enhance our growth potential. We reemphasize that international trade and investment are important engines of growth, productivity, innovation, job creation and development. We reaffirm our Leaders’ conclusions on trade at the Buenos Aires Summit. We will continue to take joint action to strengthen international cooperation and frameworks. We also reaffirm our exchange rate commitments made in March 2018.
Global current account imbalances have narrowed in the aftermath of the global financial crisis, notably in emerging and developing economies and they have become increasingly concentrated in advanced economies. However, they remain large and persistent, and stock positions continue to diverge. In assessing external balances, we note the importance of monitoring all components of the current account, including service trade and income balances. We acknowledge that external balances reflect a combination of cyclical factors, domestic policies and fundamentals, as well as spillovers from abroad. We share the view that, while some of the external imbalances may be in line with economic fundamentals, others may be excessive and pose risks. Factors underlying excessive imbalances may include excess corporate savings, miscalibrated fiscal policies, and barriers to trade in goods and services. In the spirit of enhancing cooperation, we affirm that carefully calibrated macroeconomic and structural policies tailored to country-specific circumstances are necessary to address excessive imbalances and mitigate the risks to achieving the G20 goal of strong, sustainable, balanced and inclusive growth. Meanwhile, we recognize that the composition of funding also should be carefully monitored as some forms (such as foreign direct investment) provide more stable funding than others. We look forward to the IMF’s further analytical work on global imbalances.