The group of leading nations and developing economies has called attention the risks posed to the global economy by overheating emerging markets and sovereign debt woes in advanced countries, according to The Wall Street Journal. On Wednesday, the Group of 20 released a draft communiqué to be released in full later this week that highlights priorities of cutting swollen budget deficits, loosening restrictions on exchange rates, and implementing structural changes to help better balance the global economy.
The release says that the countries have agreed on a “limited set” of indicators that would gauge economic imbalances. The indicators have yet to be determined, but would represent a step towards “coordinated policy action” that the group sees as essential for ensuring “sustainable and balanced growth.” The draft was prepared ahead of a meeting of G-20 finance ministers in Paris starting on Friday, and the group aims to develop the guidelines and indicators before the next meeting in April.
