TORONTO, June 27 (Xinhua) -- Advanced economies pledged to halve their deficits by 2013 and stabilize or reduce government debt-to-GDP ratios by 2016, according to the declaration announced at the close of the Toronto Group of 20 (G20) Summit on Sunday.
"There is a risk that synchronized fiscal adjustment across several major economies could adversely impact the recovery. There is also a risk that the failure to implement consolidation where necessary would undermine confidence and hamper growth," said the declaration.
Reflecting this balance, advanced economies have committed to fiscal plans that will at least halve deficits by 2013 and stabilize or reduce government debt-to-GDP ratios by 2016, according to the declaration.
"Advance deficit countries should take actions to boost national savings while maintaining open markets and enhancing export competitiveness," the declaration said.
On the other hand, leaders from the surplus economies pledge to undertake reforms to reduce their reliance on external demand and focus more on domestic sources of growth.
"We have agreed that the second stage of our country-led and consultative mutual assessment will be conducted at the country and European level and that we will each identify additional measures, as necessary, that we will take toward achieving strong, sustainable, and balanced growth," said the declaration.
The G20 countries have completed the first stage of Mutual Assessment Process stated in the Framework for Strong, Sustainable and Balanced Growth launched in Pittsburgh.