Global Economy State of the Global Economy The global recovery continues, but growth remains moderate and uneven, and since we last met downside risks to the global outlook have increased. Global trade performance has disappointed in recent years. Weak demand and unaddressed structural problems are the key factors weighing on actual and potential growth. There are potential shocks of a non-economic origin. A UK exit from the EU would reverse the trend towards greater global trade and investment, and the jobs they create, and is a further serious risk to growth. Escalated geopolitical conflicts, terrorism and refugee flows, are complicating factors in the global economic environment. We have strengthened the resilience of our economies in order to avoid falling into another crisis, and to this end, commit to reinforce our efforts to address the current economic situation by taking all appropriate policy responses in a timely manner. Policy Response In light of this background, taking into account country-specific circumstances, we commit to strengthening our economic policy responses in a cooperative manner and to employing a more forceful and balanced policy mix, in order to swiftly achieve a strong, sustainable and balanced growth pattern. We stand ready to deploy robust policy responses to bolster short and longer-term growth as necessary. We reiterate our commitments to using all policy tools – monetary, fiscal and structural – individually and collectively, to strengthen global demand and address supply constraints, while continuing our efforts to put debt on a sustainable path. We reaffirm the important role of mutually-reinforcing fiscal, monetary and structural policies, the three pronged approach, to buttress our efforts to achieve strong, sustainable, and balanced growth. We remain committed to ensuring that growth is inclusive and job-rich, benefitting all segments of our societies. Monetary policy authorities have committed to supporting the economic recovery and overcoming disinflation, consistent with their mandates, including through unconventional policies. However, monetary policy alone cannot lead to strong, sustainable and balanced growth. We concur on the importance of strengthening our efforts in a cooperative manner to implement our fiscal strategies flexibly to strengthen growth, job creation and confidence, while enhancing resilience and ensuring debt as a share of GDP on a sustainable path, as well as to advance structural reforms decisively. This will also allow us to respond to emerging risks and urgent social and humanitarian needs. We are also making tax policy and public spending as growth-friendly as possible, including by prioritizing expenditure in favor of high-quality investment. We will consider the composition of our budget expenditures and revenues to support productivity, employment, inclusiveness and growth. We commit to ensuring that our fiscal and structural policies support sustainable social security 4