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G20 won't hurt growth with austerity push-draft communique

Monday, 5 Nov 2012 | 3:45 PM ET

MEXICO CITY, Nov 5 (Reuters) - Leading economies in the Group of 20 will make sure they do not tighten budgets so quickly as to hurt growth, according to a draft communique drawn up for top G20 finance officials meeting on Monday.

``We will ensure the pace of fiscal consolidation is appropriate to support growth,'' the draft said.

The G20 agreed in 2010 that advanced economies should halve their budget shortfalls by the end of next year but that target could be made more flexible given the slowdown in growth in many countries, financial officials said earlier on Monday.

``We will ensure our public finances are on a sustainable path, in line with the medium-term Toronto commitments in the case of advanced economies,'' the draft said.