Shot in the arm: G-20 finance chiefs close to $2 trilion GDP growth target

Finance chiefs from the 20 largest economies say they are close to reaching their goal of boosting world GDP by more than $2 trillion over the next five years. Australian Treasurer Joe Hockey is the host of the Group of 20 meeting in the northern Australian city of Cairns. He said on Sunday that the G-20 finance ministers and central bankers had agreed to more than 900 policy initiatives to meet the goal they set earlier this year. The G-20 said an analysis of those initiatives show they should boost the combined gross domestic product of member countries by 1.8 percent above levels expected for the next five years. That’s just short of the group’s target of 2 percent.

We will hold each other to account in implementing these policy commitments.

G20 finance chiefs, in a statement

The measures, which include moves to accelerate infrastructure investment, financial reform and encourage free trade, are also expecged to create millions of new jobs. International Monetary Fund chief Christine Lagarde hailed what she called “significant progress” despite increased geo-political tensions, including in Ukraine and the Middle East, since the ministers last met in February. The meeting also saw progress on reforms to the world’s financial system, particularly on how banks apply capital rules, and ways to close tax loopholes that are used by many multinational companies.

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