G20 aims to add USD 2 trillion to global economy

Newsroom 24/02/2014 | 08:55

The world’s biggest economies have agreed to target reforms aimed at adding more than USD 2 trillion to the global economy over five years.

“We will develop ambitious but realistic policies with the aim to lift our collective GDP by more than 2 per cent above the trajectory implied by current policies over the coming 5 years. This is over US$2 trillion more in real terms and will lead to significant additional jobs. To achieve this we will take concrete actions across the G20, including to increase investment, lift employment and participation, enhance trade and promote competition, in addition to macroeconomic policies”, said ministers in a joint G20 communiqué.

All central banks “maintain their commitment that monetary policy settings will continue to be carefully calibrated and clearly communicated”, according to the press release.

The G20 calls on central banks to be “mindful of impacts on the global economy”, in a nod to concerns by emerging nations that the Federal Reserve consider the impact of its policy tapering, which has led to capital flight from some vulnerable markets.

The G20 also stated that it “deeply regrets” that progress on giving emerging nations more say in the International Monetary Fund had stalled.

Australian Treasurer Joe Hockey, who hosted the meeting, hailed the announcement as a new dawn for cooperation in the G20, writes Telegraph.

“We are putting a number to it for the first time – putting a real number to what we are trying to achieve,” Hockey told a news conference. “We want to add over USD 2 trillion more in economic activity and tens of millions of new jobs.”