The Group of 20 said on Friday the global economy was improving but it was too early to declare an end to crisis with emerging markets facing increasing volatility.

Leaders of the G-20 — which groups developed and emerging economies accounting for 90 percent of the world economy and two-thirds of its population — acknowledged the troubles faced by some emerging nations but said it was up to them, first and foremost, to put their own houses in order.

The prospect that the Federal Reserve may rein in its expansive monetary policies as soon as this month has plunged into turmoil some emerging economies that had enjoyed rapid growth thanks in part to a flood of cheap dollars.

Editor’s Note: 5 Reasons Stocks Will Collapse . . .

Emerging and developed G-20 powers in St. Petersburg struggled to find common ground over the turbulence unleashed by the prospect of the United States reducing its money printing.

"Despite our actions, the recovery is too weak, and risks remain tilted to the downside," the leaders said in their final communiqué after their two-day meeting in Saint Petersburg shadowed by the Syria crisis.

"Global growth prospects for 2013 have been marked down repeatedly over the last year, global rebalancing is incomplete, regional growth disparities remain wide, and unemployment, particularly among youth, remains unacceptably high," the statement said.

While there are signs of recovery in the euro area and growth has continued in emerging market economies, it has slowed down in developing countries, it added.

The statement appeared to recognize the need for central banks such as the US Federal Reserve eventually to end their monetary easing policies.

"We remain mindful of the risks and unintended negative side effects of extended periods of monetary easing," it said. But it also added: "Our central banks have committed that future changes to monetary policy settings will continue to be carefully calibrated and clearly communicated."

The G-20, which united in response to global crisis in 2009, now faces a multi-speed recovery with the U.S. economy pushing ahead, Europe maybe finding a floor but developing economies facing blowback from the looming "taper" by the Fed.

As the communiqué was released, markets were fixated on the monthly U.S. jobs report which came in weaker than expected, complicating the Fed's decision on whether to scale back its massive monetary stimulus later this month.

Demands led by Germany for binding targets to extend the Toronto debt reduction goals agreed at a summit hosted by Canada in 2010, fell on deaf ears as the focus has shifted firmly towards promoting growth.

"Medium-term fiscal strategies ... will be implemented flexibly to take into account near-term economic conditions, so as to support economic growth and job creation, while putting debt as a share of GDP on a sustainable path," the communiqué said.

New elements referred to a growth initiative proposed by Australia, which assumes the G-20 chair next year, a proposal to tighten regulation of so-called 'shadow banking' and extending a deadline on reining in trade protectionism.

DIFFICULT TALKS

The summit debate on the health of the world economy, chaired by Russian President Vladimir Putin on Thursday evening, was difficult and reflected concerns about a growth slowdown in the developing world.

"The most difficult and time-consuming discussions related to the evaluation of the situation of global economy," Andrei Bokarev, head of the Finance Ministry's international department who was involved in drafting the communiqué, told Reuters.

The BRICS group of large emerging economies — Brazil, Russia, India, China and South Africa — agreed to chip $100 billion into a currency reserve pool that could help counter a possible balance-of-payments crisis.

But the facility is a drop in the ocean compared to the trillions traded in foreign exchange daily and it is likely to be next year at the earliest before it is finalized.

China and Russia — which both run external surpluses — chided India on Thursday for failing to tackle a yawning current account deficit that has exposed the rupee to a brutal selloff amid a broader flight to the U.S. dollar.

"Facing increased financial volatility, emerging markets agree to take the necessary actions to support growth and maintain stability, including efforts to improve fundamentals, increase resilience to external shocks and strengthen financial systems," the G-20 communiqué said.

Indian Prime Minister Manmohan Singh won some support from Japan on Friday, as the two countries said they would expand a bilateral currency swap facility to $50 billion from $15 billion, strengthening the rupee's defenses.

Nascent signs of a turnaround in Europe after a sovereign debt crisis and slump in parts of the eurozone kept the region's leaders out of the firing line for the first time in three years.

"I want to tell you, at this G-20 we were no longer the focus of attention," said European Commission President Jose Manuel Barroso.

Editor’s Note: 5 Reasons Stocks Will Collapse . . .