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G-20 warns of Brexit shock to global economy in draft statement

[WASHINGTON] The Group of 20 economies warned of a possible shock to global growth from a UK exit from the European Union, while reiterating earlier pledges to refrain from using exchange rates for domestic advantage, a draft of the group's statement showed.

"Growth remains modest and uneven, and downside risks and uncertainties to the global outlook persist against the backdrop of continued financial volatility, challenges faced by commodity exporters and low inflation," according to the draft communique obtained by Bloomberg News.

"Geopolitical conflicts, terrorism, refugee flows, and the shock of a potential UK exit from the European Union also complicate the global economic environment," it said.

The final statement is scheduled to be released later Friday in Washington.

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The G-20 also said it would consult closely on exchange markets.

"We reaffirm our previous exchange-rate commitments, including that we will refrain from competitive devaluations and we will not target our exchange rates for competitive purposes."

The draft statement continued, saying the G-20 will resist "all forms of protectionism."

BLOOMBERG

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