The two-day G20 Finance Ministers and Central Bank Governors Meeting in Shanghai came amid weak economic growth worldwide and increasing financial volatility that saw frequent and drastic falls in the stock markets across the world.
Japan’s surprising adoption of negative interest rates, uncertainties over the prospect of rate hikes in the United States, plunging oil prices and concerns over the financial strength of leading banks in Europe have combined to add uncertainties to the global financial landscape.
Despite the challenges, the group judges that the magnitude of recent market volatility has not reflected the underlying fundamentals of the global economy.
Meanwhile, despite the slowing down of China’s economic growth, an expert who attended the meeting expressed his confidence in the country’s economy.
SOUNDBITE(ENGLISH) ROBERT SUBBARAMAN, Nomura Singapore Limited
“I think slower GDP growth as long as it associate rebalancing the economy into areas that would be improving the quality of the growth and reproducing the reliability. There is nothing wrong with slowing GDP growth.”