G20 leaders vow to boost global GDP by over US $2 trillion

Brisbane: Leaders of the world's 20 developed and emerging economies on Sunday vowed to boost global GDP by over US $2 trillion over next five years by investing in infrastructure and increasing trade, aimed at boosting the global recovery amid geopolitical tensions.

In a three-page statement issued at the end of G20 Summit here, the world leaders, including Prime Minister Narendra Modi and US President Barack Obama, said, "raising global growth to deliver better living standards and quality jobs for people across the world is our highest priority." The statement said that the global economy is being held back by a shortfall in demand, while addressing supply constraints is key to lifting potential growth.

"Risks persist, including in financial markets and from geopolitical tensions. We commit to work in partnership to lift growth, boost economic resilience and strengthen global institutions," it said.

"We are determined to overcome these challenges and step up our efforts to achieve strong, sustainable and balanced growth, and to create jobs.

"We are implementing structural reforms to lift growth and private sector activity, recognising that well-functioning markets underpin prosperity," it added.

"This year we set an ambitious goal to lift the G20's GDP by at least an additional two per cent by 2018. Analysis by the IMF-OECD indicates that our commitments, if fully implemented, will deliver 2.1 per cent. This will add more than US $2 trillion to the global economy and create millions of jobs," it said.

The statement came soon after Russian President Vladimir Putin left the summit venue where he faced concerted Western anger over the Ukraine crisis and the downing of Malaysia Airlines Flight MH17 over eastern Ukraine in July.

It said the measures to lift investment, increase trade and competition, and boost employment, along with the macroeconomic policies, will support development and inclusive growth, and help to reduce inequality and poverty.

The G20 leaders agreed to set up a Global Infrastructure Hub with a four-year mandate to contribute to developing a knowledge-sharing platform and network between governments, the private sector, development banks and other international organisations.

They also welcomed the launch of the World Bank Group's Global Infrastructure Facility, saying "We support similar initiatives by other development banks and continued cooperation amongst them."

"We need policies that take full advantage of global value chains and encourage greater participation and value addition by developing countries," the statement said.

"Our actions to increase investment, trade and competition will deliver quality jobs. But we must do more to address unemployment, raise participation and create quality jobs," it added.

The leaders agreed to reduce the gap in participation rates between men and women by 25 per cent by 2025 aimed at bringing more than 100 million women into the labour force.

They expressed strong commitment to reduce youth unemployment by acting to ensure young people are in education, training or employment.

"We are committed to poverty eradication and development, and to ensure our actions contribute to inclusive and sustainable growth in low-income and developing countries. We commit to take strong practical measures to reduce the global average cost of transferring remittances to five per cent and to enhance financial inclusion as a priority," they said.

"We have delivered key aspects of the core commitments we made in response to the financial crisis. Our reforms to improve banks’ capital and liquidity positions and to make derivatives markets safer will reduce risks in the financial system," the G20 said as it welcomed the Financial Stability Board proposal to hold additional loss absorbing capacity that would further protect taxpayers if these banks fail.

It also endorsed the 2015-16 G20 Anti-Corruption Action Plan that will support growth and resilience. "Our actions are building cooperation and networks, including to enhance mutual legal assistance, recovery of the proceeds of corruption and denial of safe haven to corrupt officials," it added.

The G20 leaders supported strong and effective action to address climate change, saying they will work together to adopt successfully a protocol that is applicable to all parties at the 21st Conference of the Parties in Paris in 2015.

They also expressed deep concern about the humanitarian and economic impact of the Ebola outbreak in Guinea, Liberia and Sierra Leone and extended their support to the urgent coordinated international response to contain the crisis.

"We call on international financial institutions to assist affected countries in dealing with the economic impacts of this and other humanitarian crises, including in the Middle East," it added.