FINANCE Ministers and central bankers from the Group of 20 leading developed and emerging nations vowed to do everything necessary to strengthen the world economy, reduce financial market volatility and generate jobs. The world's leading economies have pressed the US and Europe to swiftly resolve their fiscal challenges, warning that they threaten to harm global growth.

The two day discussion in Mexico City focused on the euro zone's persistent debt crisis and the looming “fiscal cliff” in the United States a set of automatic spending cuts and tax hikes that could impact global growth if they go in effect in January.

The G20 said in a final communiqué that Global growth remains modest and downside risks are still elevated,.

Moreover, the finance chiefs also voiced concern over Japan's own fiscal troubles, as well as slowing growth in emerging nations and “additional supply shocks” in some commodity markets.

IMF Managing Director Christine Lagarde said that the US leadership needs to address quickly the so-called 'fiscal cliff,' and warned that there were “clearly factors of uncertainty not only for the US economy, but also for the global economy, given the size of the US economy.”

The G20 statement said Washington will carefully calibrate the pace of its fiscal tightening so that public finances are placed on a sustainable long-run path while avoiding a sharp fiscal contraction next year.