This was the first G20 meeting of finance ministers and central bank governors held during Russia’s G20 presidency.
At a press conference following the meeting, Anton Siluanov said that the discussion focused on the global economy and commitments undertaken by certain countries in the sphere of budgets, public debt, labour and monetary policy. Referring to the evaluations made by the International Monetary Fund and G20 countries, the Minister said that signs of stabilisation are now visible and that an “upward trend” is likely to continue. He also said that coordinated efforts are required in the economic policies of the leading G20 countries in order to consolidate this positive trend.
The meeting participants also discussed currency markets. The Minister said that currency competition is a non-issue, because exchange rates are determined by the market. He noted that G20 countries have reaffirmed their commitment to the policy of non-competitive exchange rates. “Increase labour productivity, promote exports and improve economic efficiency – this is what governments are supposed to do, not engage in currency manipulation on foreign exchange markets. This was emphasised by all participants without exception,” said the Minister.
Reducing budget deficits and public debt was another topic of conversation, according to Mr Siluanov. The participants agreed that medium and long-term fiscal and debt targets will be determined by the G20 Leaders’ Summit in order to encourage investors and inspire confidence in the policies pursued by the G20 states. Such targets stimulate investment and, consequently, economic growth in various countries, Mr Siluanov said.
He also noted that stimulating investment as a prerequisite for economic growth has been declared as a priority of Russia’s G20 presidency. Several ways to promote investment have been identified: encouraging institutional investors; securities markets; developing multilateral development banks, which, the Minister said, should more actively participate in the capital of corporations; improving government investment; and stimulating foreign direct investment in emerging markets.
The Minister also noted that the participants supported the Russian position on public debt management. “We proposed improving the World Bank’s recommendations on public debt management that were developed some time ago,” the Minister said.
