Business World

Thursday 27 April 2017

G20 faces struggle to make headway

Spain's Prime Minister Jose Luis Rodriguez Zapatero listens to his Chinese countepart Wen Jiabao during a meeting at Zhongnanhai in Beijing on April 12. Photo: Getty Images
Spain's Prime Minister Jose Luis Rodriguez Zapatero listens to his Chinese countepart Wen Jiabao during a meeting at Zhongnanhai in Beijing on April 12. Photo: Getty Images

The world's biggest economies will struggle this week to make headway on a plan to identify countries that put the global economy at risk with China opposed to any attempt to curb its growth.

Finance chiefs from the Group of 20 countries will try to advance a complex plan for better balancing the world economy, even as concerns about rising oil prices and surging capital flows -- two immediate recovery threats -- crowd the agenda.

Ahead of the G20 meeting on Friday, No 2 economy China warned it was not about to permit others to draw up a "political tool" for curbing its red-hot economic expansion by trying to cap its hefty trade surplus.

But the French hosts of the session, which occurs on the sidelines of semiannual meetings of the International Monetary Fund and World Bank, want to build on a hard-fought agreement in February on indicators to use to measure global imbalances.

The G20 agrees the world economy needs to be weaned from US spending and that more demand must come from trade-surplus nations, most notably China and Germany. But agreement on how to achieve this better balance is proving difficult. (Reuters)

Irish Independent

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