G20 leaders commit to 2.1% economic growth

<p>World leaders at the G20 summit have agreed to boost economic growth by 2.1 per cent by 2018.</p>

World leaders in attendance at the G20 summit have come to agreement over the need to boost growth in their respective economies.

They have all set themselves the target of enhancing growth by at least 2.1 per cent over the next four years, which would add $2 trillion to the global economy.

A total of 800 measures designed to make this a realistic goal were passed at the end of the two-day event, which was held in Brisbane, Australia.

The BBC’s James Landale said that this is quite an ambitious objective for many of the countries represented at the summit, as they are presently struggling to ward off recession or show signs of strong growth.

World leaders are, however, more optimistic that they can, by 2018, transform their respective fortunes by making sure their economies have all the resources and talent needed to increase at a rapid pace.

“We have signed off on a peer-reviewed growth package that, if implemented, will achieve a 2.1 per cent increase in global growth over the next five years, on top of business as usual,” commented Tony Abbott, prime minister of Australia and host of this year’s G20 summit.

“This year the G20 has delivered real and practical outcomes. Because of the efforts the G20 has made this year, culminating in the last 48 hours, people right around the world are going to be better off … through the achievement of inclusive growth and jobs.”

Responding to news of this, Christine Langard, managing director of the International Monetary Fund, said that she and her colleagues would be closely monitoring how each of the signees to the communiqué responds to their commitment.

Although much of the focus of the summit was on economics, the world leaders also touched on other important issues, including climate change, with politicians acknowledging more has to be done.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.