Global Finance Leaders Meet as Economic Skies Darken
SHANGHAI — The global economy looks shaky. Markets for things as diverse as oil and European bank shares have plumbed new lows. The tried-and-true cures no longer seem to work.
The task for global leaders this week: Come up with Plan B.
Finance ministers and central bank governors from the world’s biggest industrialized and developing economies now arriving in Shanghai face their toughest task since the worst days of the global financial crisis. Europe is mired in low growth and Japan is teetering on the brink of recession, even though the Bank of Japan and a lengthening list of European central banks are pushing interest rates ever deeper into negative territory.
China, the world’s leading engine of economic growth in recent years, is struggling with heavy debts, a slowdown in manufacturing, stagnant exports and a flood of money leaving its borders. Countries that depend on selling oil and other resources are struggling under persistently low prices. The United States is facing a drag on growth as the strong dollar makes it cheaper for many consumers and companies to import goods instead of buying them from American businesses