Global Economy Threats Prompt Cautious G-7 Pledge on Fiscal Aid

• Group of Seven finance chiefs acknowledged gathering threats to the global economy and gave a cautious pledge to provide fiscal support if those dangers materialize.
• After a two-day meeting in Chantilly, France, finance ministers and central bankers declared risks for the global economy remain “tilted to the downside,” even if growth is stabilizing and there should be a moderate pickup next year. That’s a later timeline for improvement than envisioned at the Group of 20 summit in Osaka last month.
• Fiscal policy should be flexible and growth-friendly while rebuilding buffers where needed,” according to a summary of the talks prepared by the French G-7 presidency. “Monetary policy will continue to support economic activity while remaining mindful of financial stability and recognizing that monetary policy alone cannot address all economic challenges.”

(Source: Bloomberg)