Participants pose for a group photo during a meeting of G20 finance ministers and central bank governors in Chengdu, capital of southwest China's Sichuan Province, July 24, 2016. (Xinhua/Jiang Hongjing)
G20 finance leaders on Sunday reiterated their determination to use all policy tools -- monetary, fiscal and structural -- to foster confidence and support growth.
G20 finance ministers and central bank governors ended a two-day meeting on Sunday in southwest China's Chengdu City and issued a communique.
"The global economic environment is challenging and downside risks persist, highlighted by fluctuating commodity prices, and low inflation in many economies," noted the communique.
Financial market volatility remains high, and geopolitical conflicts, terrorism, and refugee flows continue to complicate the global economic environment, said the communique.
In addition, the outcome of the referendum on UK membership of the EU adds to uncertainty in the global economy, it said.
"In light of recent developments, we reiterate our determination to use all policy tools -- monetary, fiscal and structural -- individually and collectively to achieve our goal of strong, sustainable, balanced and inclusive growth," it said.
In separate, the communique said monetary policies will continue to support economic activity and ensure price stability, but monetary tools alone cannot lead to balanced growth.
"We are using fiscal policy flexibly and making tax policy and public expenditure more growth-friendly," it added.
The nations reaffirm their previous exchange rate commitments, including refraining from competitive devaluations and not targeting exchange rates for competitive purposes.
"We will carefully calibrate and clearly communicate our macroeconomic and structural policy actions to reduce uncertainty, minimize negative spillovers and promote transparency," the communique said.
In the communique, the G20 economies commit to enhance communication and cooperation, and take effective steps to address the challenges of structural problems, including excess capacity in some industries, exacerbated by a weak global economic recovery and depressed market demand.
According to the communique, G20 members reaffirm commitment to promote investment with focus on infrastructure in terms of both quantity and quality.
The finance leaders also endorsed recommendations to strengthen international financial architecture.
"We reaffirm that any realignment under the 15th review in quota shares is expected to result in increased shares ... of emerging market and developing countries as a whole," the communique said.
The officials also supported examination of the broader use of the SDR, such as publication of accounts and statistics in the SDR and SDR-denominated bonds.
They agreed to build an open and resilient financial system, promising to finalize critical elements of the regulatory framework and implementation of agreed financial reforms.
The Chengdu meeting came following several terror attacks in Europe. "We condemn, in the strongest possible terms, the recent terrorist attacks," the communique said.
"We will tackle all sources, techniques and channels of terrorist financing," it added.
China will host the 2016 G20 Summit in the eastern city of Hangzhou on Sept. 4 to 5 under the theme "Building an innovative, invigorated, interconnected and inclusive world economy."
