The shift of global economic momentum towards advanced economies has left G20 leaders grappling with the risks posed by the withdrawal of US monetary stimulus and a potential new wave of protectionism.
After years of agonising over sluggish growth in the developed countries, G20 leaders confronted fears that turmoil in some emerging markets – including India – posed a serious new threat to global growth.
China entered the intensifying debate over the global impact of the US Federal Reserve’s monetary policy yesterday, when it urged the world’s largest economy to be “mindful of the spillover effects” as it weighs reducing its support for financial markets.
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