TCA Financial: The G20, the group of the world’s 20 largest economies has pledged to support the global economy amid slowing growth exacerbated by Britain’s decision to leave the European Union.
The meeting, the first since the June 23 Brexit referendum, was hosted by China in Chengdu and sought to focus on the uncertainties created by the momentous vote which saw 53% of the British electorate vote to end the country’s 43-year membership of the European project.
A communiqué from the G20 ministers said the referendum result had contributed to the uncertainty about the global economy but said they were determined to “proactively address the potential economic and financial consequences.
“These G20 summits are typically long on rhetoric and short on action,” said Colin Phipps, chief economist at TCA Financial. “One need only look at previous accords they have struck especially those on currency manipulation for clues as to what the likely outcome of this pledge will be. Ultimately, each country tends to do what’s in its own best interests first and the good of the wider global economy second. This time will be no different.”
TCA Financial has warned investors to position themselves for further monetary largesse from the larger central banks including, for the first time in recent years, the Bank of England which signaled last month that it would be looking to add stimulus to the British economy in the aftermath of Brexit.
Britain’s negotiations with the EU have yet to begin since the country has not yet invoked article 50 of the Lisbon Treaty which sets out how an EU may voluntarily leave the union.

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