The global economy is in a fragile state following a volatile start of the year that has reduced equity valuations and continues to pressure energy prices downward. Developed economies are forecasted to have moderate to flat growth and emerging markets are expected to lose further momentum. The International Monetary Fund (IMF) has urged nations to cooperate both within their borders and abroad to restart the economic recovery.
The group of twenty was founded in 1999 with these types of situations in mind. Their goal is to encourage high-level discussions to promote financial stability. Major central banks showed a united front after the 2008 credit crisis, but uneven growth has put the U.S. and the U.K. on an tightening path, while the central banks of Japan, Europe and China still need to inject more stimuli to achieve growth. The impact of diverging monetary policies are adding to the lack of market stability and the eyes of the market will be following the outcome of the G20 meeting.
The finance ministers and central bank governors of: Argentina, Australia, Brazil, Canada, China, the European Union, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom and the United States will meet for two full days in Shanghai starting on Friday, February 26 and will wrap up on Saturday, February 27.
