UPDATE 3-G20 puts growth before austerity, vows to tread carefully

Sat Jul 20, 2013 10:34am EDT
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* Growth "remains too weak" - G20

* Fed stimulus withdrawal eyed warily at Moscow talks

* Communique commits to economic rebalancing, careful steps

* Shift towards growth at expense of debt-cutting

* Japan pledges credible fiscal plan

By Lidia Kelly and Jan Strupczewski

MOSCOW, July 20 (Reuters) - The Group of 20 nations pledged on Saturday to put growth before austerity, seeking to revive a global economy that "remains too weak" and adjusting stimulus policies with care so that recovery is not derailed by volatile financial markets.

Finance ministers and central bankers signed off on a communique that acknowledged the benefits of expansive policies in the United States and Japan but highlighted the recession in the euro zone and a slowdown in emerging markets.

"While our policy actions have contributed to contain downside risks, those still remain elevated," the statement said. "There has been an increase in financial market volatility and a tightening of conditions."   Continued...