G20 vow to boost global GDP by $2 tln in next 5 years

Written by PTI | Washington | Updated: Apr 13 2014, 03:47am hrs
G20'We will develop ambitious but realistic policies with the aim to lift GDP by more than 2 pct'. Reuters
Finance ministers and central bank governors of the Group of 20 Nations on Friday reiterated their commitment to boost global growth by 2 per cent, or over USD 2 trillion, over the next five years and achieve exchange rate flexibility.

"To meet our Sydney growth ambition to lift our collective GDP by more than 2 per cent above the trajectory implied by current policies over the coming 5 years, we are committed to developing new actions...," G-20 said in a communique issued on the sidelines of the annual spring meeting of the International Monetary Fund and the World Bank.

G20 in a communique after a meeting of finance ministers and central bankers in Sydney in February this year had said: "We will develop ambitious but realistic policies with the aim to lift our collective GDP by more than 2 percent ... This is over USD 2 trillion more in real terms and will lead to significant additional jobs."

These would build on previous G20 commitments; address identified gaps in the policy settings; lift and rebalance global demand and achieve exchange rate flexibility as well as increase growth potential; and create substantial positive spillovers to each other and the world economy, it said.

"We welcome the prospects for global economic growth to strengthen in 2014 but remain vigilant in the face of important global risks and vulnerabilities.

"We are determined to manage these risks and take actions to further strengthen the recovery, create jobs and improve medium-term growth prospects," it said.

G-20 members said they would ensure that their comprehensive growth strategies to be presented at the Brisbane Summit outline ambitious, realistic and concrete measures to achieve strong, sustainable and balanced growth.

"We will develop these measures to support growth and create jobs in the context of maintaining financial sector stability and fiscal sustainability, including by addressing tax avoidance and evasion," it said.

"At our September meeting, we will together review our comprehensive growth strategies, to ensure they include action

across a broad front including in the areas of investment, employment and participation, trade and competition, in addition to macroeconomic policies," the joint communique said.