ST. PETERSBURG, RUSSIA – The global economic recovery is anemic, there is a risk of a further slowdown and regional disparities are too high, the Group of 20 leaders said after their Friday summit in Russia.
“Despite our actions, the recovery is too weak, and risks remain tilted to the downside,” the leaders said in their final communique.
“Global growth prospects for 2013 have been marked down repeatedly over the last year, global rebalancing is incomplete, regional growth disparities remain wide, and unemployment, particularly among youth, remains unacceptably high,” the statement said.
While there are signs of recovery in the euro area and growth has continued in emerging market economies, it has slowed in developing countries, it added.
In reference to concerns by emerging markets about the tapering of stimulus programs, the G-20 vowed that future changes to monetary policy settings will be “carefully calibrated and clearly communicated.”
But also the statement appeared to recognize the need for central banks, including the U.S. Federal Reserve, to eventually end their monetary easing policies.
“We remain mindful of the risks and unintended negative side effects of extended periods of monetary easing,” it said.
“We recognize that strengthened and sustained growth will be accompanied by an eventual transition toward the normalization of monetary policies,” it added.