(Recasts lead; adds McCormick's comments on IMF reforms, Doha Round.)
SAO PAULO -(Dow Jones)- Group of 20 members discussed the need for fiscal stimulus packages as a means to confront the threat to economic growth posed by the ongoing financial crisis, said a U.S. Treasury official Sunday who cited China's latest move a "welcome step."
In reference to Beijing's announcement earlier Sunday of a 4-trillion-yuan ($586 billion) package aimed at supporting growth, Treasury Under Secretary for International Affairs David McCormick said other countries could follow suit. However, each package will depend on each country's unique situation, he added.
Individual country's stimulus package could boost consumption and demand for imports, McCormick said. "That will have not only a positive impact on their economy (but) also some potential lift for others," he said.
McCormick spoke at a press briefing after a meeting of finance ministers and central bankers from the Group of 20 nations ended.
McCormick highlighted the U.S. government's stimulus package earlier in the year, which gave a boost to domestic consumption in the third quarter.
Next week's summit of G-20 leaders will lay the groundwork for the critical reforms and regulatory changes needed to resolve the global financial crisis, he said.
"We expect leaders will discuss actions that their countries have taken and will take individually and collectively to respond to the challenges that lie ahead," said McCormick.
G-20 leaders will meet Nov. 14-15 in Washington, D.C.
President-elect Barack Obama has been kept up to speed on developments and discussions among G-20 members, and may participate in next week's meeting, McCormick said.
"We want to have a nice hand-off so that we can continue with the reform agenda going forward," he said about the U.S. presidential transition.
The U.S. also supports much-needed reforms of multilateral institutions, such as giving emerging economies a greater say in them, McCormick said, adding that such institutions are a base "to evolve from."
Noting that he had heard no talk at the weekend meetings of creating new institutions, McCormick said the IMF's role in resolving the global financial crisis has been critical and that it should grow in the future.
Citing the G-20's call for accelerating the conclusion of the Doha Round of trade talks as an example of what the world needs to do, McCormick urged nations to resist calls for protectionism that could arise during the crisis, and instead maintain "open and competitive economies."
-By Jeff Fick, Alastair Stewart, Natasha Brereton and Terence Poon; 55-11-8147-0569; Brazil@dowjones.com
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(END) Dow Jones Newswires
November 09, 2008 17:27 ET (22:27 GMT)

Publié le 09 novembre 2008 Copyright © 2008 Dowjones