TOKYO - Global financial ministers called Saturday for quick and effective action to safeguard faltering economic growth and rebuild shaken confidence as they ended an annual meeting of the International Monetary Fund.
"Global growth has decelerated and substantial uncertainties and downside risks remain," an IMF advisory committee said in a communique. It exhorted advanced economies to carry through with needed structural reforms and "credible fiscal plans."
Decisive action is needed to "break negative feedback loops and restore the global economy to a path of strong, sustainable and balanced growth," it said.
In this photo released by World Bank, World Bank President Jim Yong Kim, second right, speaks as South Korean Finance Minister Bahk Jae-wan, left, U.S. Treasury Secretary Timothy Geithner, second left, and Japan's Vice Finance Minister Tsutomu Okubo, right, listen to him at a ministerial meeting on the global agriculture and food security program at the annual meetings of the IMF and World Bank meetings in Tokyo Friday.
The annual meeting of the IMF and World Bank, convened in Tokyo this year, has highlighted frustrations among many countries over drag on growth from the lingering debt crisis in Europe, plus alarm over a possible blow to the world's largest economy if the U.S. fails to resolve an impasse over its budget deficit.
"A durable solution to the Euro area crisis would provide a much-needed boost to global recovery," Yi Gang, deputy governor of China's central bank told fellow financial leaders at the meeting Saturday of the IMF's International Monetary and Financial Committee.
Yi said uncertainty over government debts in the U.S. and Japan was slowing recovery and causing "costly spillover effects to the rest of the world."
Slower growth elsewhere is sapping the potential in the poorest countries, many of which depend on exports of minerals, oil and other commodities to the industrial countries.
"We should all be committed in our resolve to avoid a worst case scenario where strains in the euro area deepen, fiscal cliff and debt ceiling problems in the U.S. are not resolved, and growth in emerging market economies continues to decline," said Pravin J. Gordhan, South Africa's finance minister.
Christine Lagarde, the IMF's managing director, summed up the meetings saying they yielded "a very strong commitment to policy implementation."