Finance ministers and central bankers from the Group of 20 leading developed and emerging nations vowed to do "everything necessary" to strengthen the world economy, reduce financial market volatility and generate jobs.
The two-day talks in Mexico City focused on the eurozone's relentless debt crisis and the looming "fiscal cliff" in the United States – a set of automatic spending cuts and tax hikes that could impact global growth if they go in effect in January.
"Global growth remains modest and downside risks are still elevated," the G20 said in a final communique.
The statement cited "possible delays in the complex implementation of recent policy announcements in Europe" and a "potential sharp fiscal tightening in the United States."
But the finance chiefs also voiced concern over Japan's own fiscal troubles, as well as slowing growth in emerging nations and "additional supply shocks" in some commodity markets.
G20 officials urged the winner of Tuesday's US presidential election, pitting incumbent Barack Obama against Republican Mitt Romney, to rapidly act to reach a deal with Congress after the vote.
"The US leadership needs to address quickly the so-called 'fiscal cliff,'" said IMF Managing Director Christine Lagarde.
She warned that there were "clearly factors of uncertainty not only for the US economy, but also for the global economy, given the size of the US economy." "Whoever is going to be elected or re-elected tomorrow will be faced with that challenge," Lagarde said.
The G20 statement said Washington will "carefully calibrate" the pace of its fiscal tightening so that public finances are placed on a "sustainable long-run path while avoiding a sharp fiscal contraction" next year.
Spanish Economy Minister Luis de Guindos warned that the US fiscal cliff hung over the world like the "Sword of Damocles."
Since a G20 summit in June, the IMF slashed its 2012 global growth forecast to 3.3 per cent, eurozone unemployment rose to a record 11.6 per cent in September and growth decelerated in emerging nations.
true. sans USA nothing can save the great emerging economies why even Europe union! Outsourcing is the key issue but USA cannot now due to US presidential elections. President elect cannot take any clear views during the period of 'Lame duck' situation. Till January 2013 nothing is going to happen in USA about global economics unfortunately. Again outsourcing is bugging US citizens now as there is job issues to Americans. US businessmen want outsourcing as they can outsourcing as that drastically cuts costs of hiring Americans within US and Americans need jobs. One way is possible if outsourced contractors are forced to hire at least give jobs to Americans in 50% vacancies but that may not work as margins will drastically dwindle their profits, as Americans need to be paid at American standard rates of salaries. Yes either chicken is first or egg? Then again all emerging economies counted too much on outsourcing as a competitive advantage, that the great messing done by emerging eco