A communique issued yesterday after the G-20 Finance Ministers and Central Bank Governors meeting, which among others was attended by Finance Minister P Chidambaram, said the current global economic outlook presents challenges, including unacceptably high unemployment in many countries and downside risks remain.
"The US needs to take urgent action to address short-term fiscal uncertainties," the communique said while recognising that strengthened and sustained growth will be accompanied by an eventual transition toward the normalisation of monetary policy.
Volatility of capital flows continues to be an important challenge, the communique said.
Understanding that the process of reaching a final agreement on a new quota formula is integrated with the 15th General Quota Review, the G-20 said it remains committed together with the whole IMF membership to agree on the quota formula and complete the 15th General Quota Review by January 2014.
G-20 countries reiterated the need for the Global Forum to complete the allocation of comprehensive country ratings regarding the effective implementation of information exchange upon request and ensure that the implementation of the standards are monitored on a continuous basis.
The communique welcomed the recent replenishment of the African Development Fund and reiterated G20's commitment to achieving a successful International Development Association (IDA) 17 replenishment.
The meeting of the G20 Finance Ministers and Central Bank Governors' was held on the eve of the Annual Meeting of the Board of Governors of the IMF and the World Bank Group.
The ministers and governors discussed a number of questions, including recent developments in the global economy and financial sector vulnerabilities, the international financial architecture's reform, financing for investment and strengthening the G20 process.
In their communique, the G-20 countries said they will intensify their collective and national efforts to create a robust environment for job - rich and inclusive growth, and to address the downside risks to the global economy.