IMF chief hails G20 commitment to global stability fund (2)

Finance ministers and Central Bank governors of G20 countries met in Mexico City on Sunday and Monday to debate a wide range of issues, with a looming fiscal crunch in the United States and the ongoing European debt crisis on tope of their agenda.

Largarde urged the United States to move quickly to address the so-called fiscal cliff -- a package of tax increases and spending cuts to be adopted if U.S. legislators fail to agree on a budget by January. The program, set to begin on Jan. 1, would cause a 1.3-percent decline in the U.S. economy during the first six months of 2013, according to U.S. estimates.

"The U.S. needs to show leadership and quickly address the fiscal cliff and debt credibility," Lagarde said. "This is a clear factor of uncertainty going forwards for the U.S. economy, and for the economy of the world as a whole."

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