G20 vows powerful response to rising challenges

PanARMENIAN.Net - The Group of 20 major economies have vowed to mount a powerful response to the rising challenges facing the world economy as it reels from a debt crisis in the eurozone.

The pledge, made in an unexpected statement late Thursday, September 22, came after world leaders ramped up pressure on Europe take decisive action to contain its debt crisis as markets spun out of control.

The G20 finance ministers and central bankers vowed in a joint statement to deliver "a strong and coordinated international response to address the renewed challenges facing the global economy." The finance chiefs noted "heightened downside risks from sovereign stresses, financial system fragility, market turbulence, weak economic growth and unacceptably high unemployment."

The G20 officials, grouping advanced and emerging-market economies, said they would work together to support growth and implement "credible fiscal consolidation plans." "This will require a collective and bold action plan, with everyone doing their part," they said, hours after stocks plunged worldwide.

The officials said the action plan would be prepared for the G20 leaders summit on November 3-4 in Cannes, France.

They had not been expected to issue a statement following their working dinner in Washington on the sidelines of the International Monetary Fund and World Bank annual meetings, AFP reported.