“Global growth remains weak, and downside risks have become more salient,” the IMF said in a report released ahead of the G20 meeting. But with the use of monetary policy reaching its limits in some countries, analysts see more room for using fiscal measures. At an earlier G20 meeting in February, finance ministers vowed to use “all policy tools” – monetary, fiscal and structural – to support economic growth. The International Monetary Fund has called on G20 nations to boost government spending as the impact of ultra-low interest rates begins to reach its limits in developed countries. But the IMF wants advanced economies like Germany and the United States to channel more public spending into infrastructure investment to help boost global growth, an issue that has sparked divisions among G20 members.

Source: The Guardian July 23, 2016 06:02 UTC