Finance ministers and central bankers from the Group of 20 have said they will work to grow their collective gross domestic product (GDP) by an additional two percent of world GDP or about $2 trillion over five years. This would be an increase of 10-12% over projected world GDP growth that was expected for the next five years.
The 20 nations that account for roughly 85 percent of the world's economy.
"We will develop ambitious but realistic policies with the aim to lift our collective GDP by more than two percent above the trajectory implied by current policies over the coming five years," the statement said.
The goal proposed by Hockey stemmed from an International Monetary Fund paper prepared for the Sydney meeting. The IMF analysis estimated that if structural reforms were implemented, the global economy could grow by about 0.5 percentage points per year over the next five years. It forecast global growth of 3.75 percent for this year, going up to 4 percent in 2015.
The implementation of the necessary structural reforms for sustainable growth provided much fodder for the leaders in attendance over the weekend, as each nation would have develop its own plan to achieve the fiscal goals.
"If we want to have - not just job creation, but job security - then we all have a responsibility to undertake structural reform," Hockey said.
These reforms include liberalizing product and labor markets, lowering trade barriers, bringing more women into the workforce,and boosting investment in infrastructure.
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The 20 nations that account for roughly 85 percent of the world's economy.
"We will develop ambitious but realistic policies with the aim to lift our collective GDP by more than two percent above the trajectory implied by current policies over the coming five years," the statement said.
The goal proposed by Hockey stemmed from an International Monetary Fund paper prepared for the Sydney meeting. The IMF analysis estimated that if structural reforms were implemented, the global economy could grow by about 0.5 percentage points per year over the next five years. It forecast global growth of 3.75 percent for this year, going up to 4 percent in 2015.
The implementation of the necessary structural reforms for sustainable growth provided much fodder for the leaders in attendance over the weekend, as each nation would have develop its own plan to achieve the fiscal goals.
"If we want to have - not just job creation, but job security - then we all have a responsibility to undertake structural reform," Hockey said.
These reforms include liberalizing product and labor markets, lowering trade barriers, bringing more women into the workforce,and boosting investment in infrastructure.
Read more »
