The G20 Finance Ministers and Governors of Central Banks meeting ended with messages that urged people away from competitive devaluation and called to fight against all kinds of protectionism. While the declaration highlighted how many countries' economies were strengthening, it also mentioned that global growth still remains moderate and behind expectations. Thus, the declaration concluded, the G20 countries need to take stronger steps to support economic growth and recovery.
It also underlined that for ensuring sustainable, strong and balanced growth, macroeconomic and structural reforms are of utmost importance. While sound monetary policies will continue to support an economy, they cannot create a balanced growth on their own. The moderate economic recovery may also cause tightening of monetary conditions in developed economies as the report pointed out and further highlighted that the G20 member countries are determined to take the right steps regarding their currency systems, which are set by market conditions. Members have noted that in order to avoid foreign exchange rates that do not reflect economic fundamentals and indicators, they will be focusing more on flexible foreign exchange rate systems.
"We will try to avoid competitive devaluation and continue to fight against any kind of protectionism. We will set flexible financial policies by taking into consideration the economic conditions and which keep the rate of debts to national income at a sustainable level in order to achieve growth and increase in employment. Therefore, we will review our budget expenses and income composition to support productivity and comprehensiveness," stated the Member States on the declaration. Members will publish their policy changes before they are implemented The declaration also stated that member countries will explicitly disclose and share any monetary or other policy changes that may affect other countries or regions in order to decrease uncertainties and increase transparency.
The Member States also noted that the progress in potential and realized growth figures is still a drawback and that they are determined to implement growth strategies that will strengthen demand and support potential growth.
The declaration also stated that members have already implemented some of the strategies prepared by the road map, which was created for the first time in order to follow up on the progress.
