G20 ministers pledge to do more to protect global economy from Brexit vote turmoil

 
Francesca Washtell
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World Leaders Gather To Discuss The Financial Crisis At The G20 Summit
G20 finance ministers and central bankers are meeting in China this weekend (Source: Getty)

The Group of 20 nations will do more the bolster global economic growth in the coming months, ministers said today as the organisation met in the Chinese city of Chengdu.

Central bankers and finance ministers from G20 nations are meeting this weekend to discuss challenges facing the global economy that have been made worse by the UK's vote to leave the EU one month ago today.

More than $2 trillion (£1.5 trillion) has been wiped off the world's stock markets since the surprise pro-Brexit vote, while the pound has fallen to 31-year lows against the dollar.

Ministers also emphasised the importance of "shared" growth within countries to lessen global economic challenges.

Read more: Leaving the Single Market would blow a £14bn hole in the public finances

"This is a time when it is important for all of us to redouble our efforts to use all of the policy tools that we have to boost shared growth," US Treasury secretary Jack Lew said to reporters today.

In a draft communique seen by Reuters, which could be subject to change before it is released tomorrow, ministers said: "The recovery continues but remains weaker than desirable. Meanwhile, the benefits of growth need to be shared more broadly within countries to promote inclusiveness."

Read more: Draghi won't be drawn on stimulus measures, citing Brexit uncertainty

Ministers also struck an optimist beat to the Brexit vote fallout, saying it had added to uncertainty but that G20 members were "well positioned to proactively address the potential economic and financial consequences".

The government said on Tuesday it will not trigger Article 50, the official signal that the UK will leave the EU, in 2016.

When Article 50 of the Lisbon Treaty is invoked, the UK will have two years in which to negotiate new trade deals with the rest of the world and agree the terms of the exit.

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