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Highlights of G20 draft communique

Monday, 5 Nov 2012 | 4:12 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.

Here are some highlights from the draft communique that was read out by a G20 official:

GLOBAL OUTLOOK:

``Global growth remains modest and downside risks are still elevated, including due to possible delays in the complex implementation of recent policy announcements in Europe, a potential sharp fiscal tightening in the United States, securing funding for this year's budget in Japan, weaker growth in some emerging markets.''

U.S. ``FISCAL CLIFF'':

The United States will carefully calibrate the pace of fiscal tightening to ensure that public finances are placed on a sustainable long-term path while avoiding a sharp fiscal contraction in 2013.``

CUTTING DEFICITS:

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

CURRENCIES:

''In this regard, we reiterate our commitments to move rapidly toward more market determined exchange rate systems and exchange rate flexibility to reflect underlying fundamentals, avoid persistent exchange rate misalignments, and refrain from competitive devaluation of currencies.``

''We reiterate that excess volatility of financial flows and disorderly movements in exchange rates have diverse implications for economic and financial stability.``