The G20 agreed to “lift our collective GDP by more than 2 per cent above the trajectory implied by current policies over the coming 5 years”. This target appeared to be in line with expectations from the IMF communique addressed to the G20 meeting in Sydney. The IMF report suggested that growth could be “projected to increase to about 3¾ percent in 2014 (from 3 percent in 2013) and 4 percent in 2015” and the report referenced the January World Economic Outlook report. Christine Lagarde, Managing Director of International Monetary Fund said, “”We believe that if the reforms that have been identified (at the G20 in Sydney) are adhered to, delivered by the various authorities, then that is a goal that can be achieved or possibly exceeded.” G20 News congratulates Joe Hockey, the Australian Treasurer, the Department of Prime Minister and Cabinet Australia’s G20 Taskforce, the Department of Foreign Affairs and Trade and the entire group of Central Bank Governors and Finance Ministers for coming to agreement on a number of topics, including global growth goals.

• “This is over US$2 trillion more in real terms and will lead to significant additional jobs.” and “including to increase investment, lift employment and participation, enhance trade and promote competition, in addition to macroeconomic policies. These actions will form the basis of our comprehensive growth strategies and the Brisbane Action Plan.”
• The legacy issues of the financial crisis of 2008 to 2009 still have weight and need for attention by the G20, evidenced by this in item 10 on the communique, “in response to the global financial crisis: building resilient financial institutions; ending too-big-to-fail; addressing shadow banking risks; and making derivatives markets safer.”

This was an early post and an exhaustive analysis and coverage of the reaction will be conducted soon . . .

– By Julien David

Photo Credit: G20.org – https://www.g20.org/sites/default/files/images/gallery_images/IIF13.jpg

Christine Lagarde, G20, Growth Targets, IMF, Joe Hockey