Recent action taken by major central banks has bought governments time to spur growth but the European debt crisis and other risks still threaten the world economy, G20 officials said Monday.
Deputy finance ministers and central bankers from the Group of 20 wealthy and emerging nations discussed the risks to the global economy, the eurozone crisis and food price volatility during talks Sunday and Monday in Mexico City.
The eurozone debt crisis, the tightening US budget and slower growth in emerging economies are the "most serious risks to the world economy," Mexican central bank deputy governor Manuel Ramos Francia told a news conference.
Ramos said the European Central Bank's plan to buy bonds of struggling eurozone nations and stimulus programs launched by the US Federal Reserve and Bank of Japan have "tempered risks, at least temporarily."
"It buys time," he said, "but the risks are still here."
In the case of Europe, ECB action "temporarily avoids the materialization of extreme risks that could have systemic consequences," he said, adding that it gives the 17-nation eurozone time to implement measures to fix the crisis.
The talks in Mexico were held to lay the groundwork for a meeting of finance ministers and central bank governors in November, the last one hosted by Mexico before it hands over the G20 rotating presidency to Russia.
The G20 officials also discussed the volatility of commodity and food prices around the world, including ways to boost trade, increase productivity and improve price transparency.
"Facilitating international trade in raw materials is something that will contribute to improving prices and volatility," said Gerardo Rodriguez Regordosa, Mexico's deputy finance minister.