Brexit impact: G20 nations warn of slower global growth. Key takeaways

Global uncertainty on the back of Brexit dominated talks at the G20 finance ministers' meet

G20 Finance Ministers and Central Bank Governors during a group photo in Chengdu in Southwestern China's Sichuan province. Photo: Reuters

A meeting of G20 finance ministers over the past weekend highlighted the challenges faced by the global economy on the back of Brexit-related developments. 

The unit stressed on the uncertainty in the global economy and the need for UK and EU to remain close partners.

Here are key warnings that the G20 issued after its meeting in Chengdu, China.  

Global uncertainty 

The outcome of June’s referendum on Brexit has added to the uncertainty in the global economy. However, they also said that the nations were well-positioned to proactively address the potential economic and financial consequences of the vote. 

Other factors

Several other factors are complicating the global economic environment, which include “geopolitical conflicts, terrorism and refugee flows”. 

EU-Britain talks 

Officials said protracted or spiteful talks between EU and Britain are likely to heighten the dangers.

Jacob Lew, US Treasury Secretary, also stressed on the same argument and said that there was a need for negotiations to take place in a smooth, pragmatic and transparent manner. 

China & Turkey

During the meeting concerns about slowing growth in China had faded out due to other being in focus. The nation is said to have made a fundamental transition to make domestic consumption the key economic driver instead of massive public spending and cheap exports.

Structural reforms

“Lacklustre growth of the post-crisis era continues,” IMF chief Christine Lagarde said in a statement. “Structural reforms are particularly critical.”