The G-20 states made their commitment to maintain economic stimulus package until economic recovery could roll with certainly and the monetary market remained steady. This official statement was to be presented by the week end [4/9/2009] by the time the Minister of Finance and governors of central banks of the developing and advanced states meet in London, England. In preliminary meetings toward summit meeting by end of this month, the G-20 also discussed prospects of the world’s economy, turbulence in banking bonus, and to tighten up financial regulations and to reform international monetary institutions.
“The stimulus that was released too soon at present has its alarming risk, with significant implications on growth and unemployment”, remarked Head of the International Monetary Fund [IMF] Dominique Strauss-Kahn. Global recovery, according to Strauss-Kahn, would most probably run slow due to the high level of unemployment which might continue until next year. In the USA itself, the unemployment level on last August rose to 9.7% where 216.000 workers lost their jobs. This figure was bigger compared to previous year where unemployment was at 9.4% level. But in Europe, the unemployment level by July 2009 hit the highest record in the past 10 years at 9.5%.
“The riskiest thing was to think that because measures had been taken, recovery is well guaranteed. There is no country who would be satisfied to see these results” said England’s Minister of Finance Allistair Darling who acted as host of the G-20 Meeting. Meanwhile Governor of the Europe Central Bank Jean Claude Trichet stated that the global monetary crisis was not over so the European Monetary Authority would continue the policy until crisis was really overcome.
Trichet remarked that although the process of economic contraction was coming toward end, right this moment was not the time to escape from crisis. “Uni Europe is determined to take firm action in time to come” he said. Signs of improvements in some economic indicators drove ECB to gradually increase forecast reference level.
ECB estimated that Gross Domestic Product [GDP] in Europe would be up by 0.2% by 2010, more optimistic compared to previous forecast which projected contraction of 0.3%. This year ECE projected growth of Uni Europe to be minus 4.1%, better than the previous forecast of minus 4.6% “There is still a great deal of uncertainty and volatility to appear in the coming data” Trichet underscored. The G-20 states were: Argentine, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom and United States of America.