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Growth challenge after G20 stalemate

Monday, February 29, 2016 - 01:46

Worries about the state of the global economy found little relief at the meeting of the world's top 20 economies in Shanghai. As Laura Frykberg reports, central bankers and finance ministers failed to reach any agreement on how to inject a bit more life in stagnating growth.

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If you were hoping G20 Finance MInisters and Central bankers had all the answers you'd be disappointed When it comes to getting more growth into the global economy not even the people who run it seem to know what to do. And a stark warning from IMF chief Christine Lagarde: (SOUNDBITE) (ENGLISH) CHRISTINE LAGARDE, MANAGING DIRECTOR, INTERNATIONAL MONETARY FUND, SAYING "There is a risk that the recovery could derail. So my sense is that there was in the room, a renewed sense of urgency, and a renewed sense for collective action." More than 8 years of ultra-low interest rates -and trillions of dollars of stimulus - and growth is, at best, insipid in most parts of the world. And that matters because without growth jobs cant be created - and millions of people suffer. G20 leaders say they need to look BEYOND low rates and printing money to shake the global economy out of its torpor. But there was no plan for specific plan to spark activity, something investors had been hoping for on concerns about a slowdown in China, the world's second-biggest economy. Jack Lew is US Treasury Secretary. (SOUNDBITE) (ENGLISH) U.S. TREASURY SECRETARY, JACK LEW, SAYING: "We need to redouble our efforts to boost global demand, rather than rely on the United States as the consumer of first and last resort." Divisions have emerged among major economies over the reliance on DEBT to drive growth. The use of negative interest rates - where banks PAY the central bank to hold their money - has also divided opinion. Germany has made it clear it was not keen. Or on any new stimulus. So for the global economy it's back to plan A - keep soldiering on in the hope that things will get better. Any Plan B, it seems, is just too divisive.

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Growth challenge after G20 stalemate

Monday, February 29, 2016 - 01:46