G20 talks to focus on global growth
SHANGHAI: The weakening global-growth outlook and how policy makers should respond will dominate the agenda when officials from the world’s biggest economies gather in Shanghai next week, people familiar with the talks said.
The Group of 20 central bankers and finance ministers will also discuss the turmoil in China’s financial markets and ways to bolster a safety net for the global financial system, according to the officials, who asked not to be named because details of the meeting’s agenda haven’t been publicly announced.
China, whose hosting of the forum this year culminates in a leaders’ summit in September, is pushing a detailed and diverse platform that covers everything from bolstering investment in infrastructure to climate-friendly financing, the people said.
The discussions will include exploring ways to make the global financial system more stable, updating International Monetary Fund governance and countering terrorist financing.
Any type of a sweeping global agreement to combat currency- market volatility is unlikely, even as some analysts and investors say there’s a potential need for a modern-day Plaza Accord, the 1985 deal among major economies to weaken the dollar.
China’s economic outlook will feature prominently. Turmoil in the nation’s stock markets and weakness in its currency in January roiled investors around the world, prompting officials including IMF Managing Director Christine Lagarde to call for better communication from the nation’s Communist policy makers.