G20 vows to give ma­jor boost to world econ­omy

Viet Nam News - - Front Page -

CAIRNS, Aus­tralia — G20 na­tions in­clud­ing the United States and China said yes­ter­day they can over­come geo-po­lit­i­cal ten­sions and fi­nan­cial risks to achieve ex­tra com­bined growth of 1.8 per cent, adding tril­lions of dol­lars to the world econ­omy.

Their two-day meet­ing in Cairns was fo­cused on de­vel­op­ing a suite of poli­cies to reach an am­bi­tious goal of rais­ing the to­tal GDP of the 20 ma­jor world economies by two per cent above cur­rent pro­jec­tions over the next five years.

Fi­nance min­is­ters and cen­tral bank gover­nors, in­clud­ing US Fed­eral Re­serve Chair Janet Yellen, want to take their plan to the G20 lead­ers’ sum­mit in Bris­bane in Novem­ber.

In a com­mu­nique, they said that the 1,000 mea­sures agreed so far – in­clud­ing to ac­cel­er­ate in­fra­struc­ture in­vest­ment, fi­nan­cial re­form and en­cour­age free trade – could add 1.8 per cent to GDP and cre­ate mil­lions of new jobs.

But more re­forms were needed to meet the two per cent goal, agreed in Syd­ney ear­lier this year.

“Pre­lim­i­nary anal­y­sis by IMF-OECD in­di­cates th­ese mea­sures will lift our col­lec­tive GDP by an ad­di­tional 1.8 per cent through to 2018,” they said.

“In the lead up to the Bris­bane (lead­ers’) sum­mit, we will con­tinue to iden­tify a se­ries of ad­di­tional mea­sures to meet our col­lec­tive growth am­bi­tion.

“We will hold each other to ac­count in im­ple­ment­ing th­ese pol­icy com­mit­ments.” In­ter­na­tional Mon­e­tary Fund chief Chris­tine La­garde hailed...

... what she called “sig­nif­i­cant progress” de­spite in­creased geopo­lit­i­cal ten­sions, in­clud­ing in Ukraine­andtheMid­dleEast, since the min­is­ters last met in Fe­bru­ary.

“De­spite the global re­cov­ery con­tin­u­ing, the pace of growth re­mains low and un­even, in part given in­creased geopo­lit­i­cal ten­sions and risks of fi­nan­cial mar­ket tur­moil,” she said.

“Pro­mot­ing eco­nomic poli­cies that can con­trib­ute to a more ro­bust and job-rich re­cov­ery is there­fore crit­i­cal at this stage.

“I com­mend G-20 coun­tries for sig­nif­i­cant progress in de­vel­op­ing growth strate­gies to lift medium-term growth.”

While wel­com­ing de­vel­op­ments, US Trea­sury Sec­re­tary Jack­Lew­saidthe­worlde­con­omy was fac­ing head­winds, point­ing to dis­ap­point­ing growth in Europe and Ja­pan and a slow­down in emerg­ing economies, in­clud­ing China.

“ In light of th­ese chal­lenges to the global econ­omy, the G-20 has stressed the im­por­tance of im­me­di­ate support for cre­at­ing jobs, grow­ing the econ­omy, and im­ple­ment­ing fis­cal strate­gies flex­i­bly to sup- port de­mand,” Lew said.

The G-20 also stressed con­cern over the hu­man and fi­nan­cial costs of the Ebola epi­demic sweep­ing through west Africa, which had po­ten­tially se­ri­ous im­pacts on growth and sta­bil­ity in af­fected coun­tries.

Aus­tralian Trea­surer Joe Hockey, who was chair­ing the meet­ing, wel­comed the “gen­uine mea­sures” put for­ward but warned against com­pla­cency, point­ing to high lev­els of global un­em­ploy­ment and sub­dued in­ter­na­tional con­fi­dence.

“The G-20 recog­nises that many of the de­ci­sions and ac­tions to get the world econ­omy mov­ing are dif­fi­cult,” he said.

“But we are de­ter­mined to lift growth, and coun­tries are will­ing to use all our macroe­co­nomic levers – mon­e­tary, fis­cal and struc­tural poli­cies – to meet this chal­lenge.”

To help shift from gov­ern­ment-led growth to­wards pri­vate sec­tor-led growth, a key G20 goal, the min­is­ters agreed to es­tab­lish a global in­fra­struc­ture hub to share in­for­ma­tion be­tween coun­tries.

The Global In­fra­struc­ture Ini­tia­tive was meant to in­crease “ qual­ity in­vest­ment, par­tic­u­larly in in­fra­struc­ture.” “ In­vest­ment is crit­i­cal to boost­ing de­mand and lifting growth,” they said.—

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