Following their meeting on the state of the global economy on Monday, the leaders from the G-8 Summit stressed the importance of job creation and promoting economic growth, saying it is their “top priority.”
The leaders said that, despite weak global economic prospects, policy actions in the U.S., eurozone and Japan have contributed to reduced downside risks.
“While countries have taken steps to avoid the worst of the tail risks that faced the world economy in 2012, vulnerabilities remain in 2013, highlighting the need for countries to press ahead with the necessary reforms to restore sustainable growth and jobs,” the leaders said.
G-8 leaders also said the eurozone remains in a recession, adding additional “strengthening of the architecture of the European Economic and Monetary Union…” is necessary to further reduce financial fragmentation and strengthen banks.
“The US recovery is continuing and the deficit is declining rapidly in the context of a continuing need for further progress towards balanced medium-term fiscal sustainability and targeted investments to enhance growth,” the leaders said. “Japan’s growth will be supported by its near-term fiscal stimulus, bold monetary policy and recently announced strategy for promoting private investment. However it will need to address the challenge of defining a credible medium-term fiscal plan. Some of our central banks have continued to use highly accommodative monetary policy to support their domestic economies, including through unconventional means such as quantitative easing. Russia is experiencing low unemployment and a favorable fiscal position, but more moderate global growth and volatile commodity prices will be a challenge.”
The leaders advocated for decisive action to speed the recovery and restore the economy, monetary policy that continues to support the recovery and bolster price stability and to restore medium-term fiscal sustainability.