As the big economies are running at different paces with their diverging monetary policies, the Finance ministers and the central bank heads of Group of 20 nations will be facing a stringent task of coordinating their actions for spurring the global growth at the crucial G20 meetings this week in Istanbul.
Among the issues that are expected to top the agenda during the meeting of the Group of 20 leading economies include the rising concern over the United States’ ability to sustain its economy amidst the global slowdown.
The meeting, which is scheduled for Monday and Tuesday, comes at a time when severe economic issues have cropped up in the recent times, such as Greece’s casting a shadow over Europe, a strengthening dollar which threatens other emerging economies and cheap crude oil playing havoc with inflation and growth forecasts.
In a blog post on Friday, IMF Managing Director Christine Lagarde said, “Without action, there is a lot at stake. We could see the global economic supertanker continuing to be stuck in the shallow waters of sub-par growth and meager job creation.”
Last week, US Treasury Secretary Jack Lew said that the country could not act as “the sole engine of growth” for the global economy. Taking tougher stance over the prevailing condition of Euro Zone, a senior US official said the clear message of Washington would be to make Europe realize that it is not doing enough.
According to Turkey’s Deputy Prime Minister Ali Babacan, handling sluggish growth in the world and giving low income or developing countries more teeth will be among the priorities for his country.
Last week, Canadian Finance Minister Joe Oliver expressed concern over the stalled euro zone, slowdowns in major Asian players– India and China–, Ukraine geopolitical crises and the unrest in Iraq and Syria.
“Kick-starting global growth will be front and center at the G20 meetings. Though America is carrying the world economy at the moment, that is simply not sustainable,” Oliver said.
Germany is expected to argue over its rising domestic demands and the plans to raise the public spending, as per the European sources familiar with the country’s agendas for G20.