A G20 Agenda for Growth and Resilience in 2014
In 2014, the G20 is moving to address the global growth challenge in an ambitious and meaningful way.
In February, G20 Finance Ministers and Central Bank Governors committed to developing new measures with the aim of raising the level of G20 output by at least 2 per cent above the currently projected level in the next five years. This will make a significant difference – a boost of over $2 trillion to global GDP with the promise of millions of additional jobs.
The Brisbane Action Plan, to be discussed by leaders in November, will put in place short and medium-term actions to help achieve this growth ambition. To deliver on this ambition, this collective commitment needs to be translated into specific actions by each country.
Strategies to Stimulate Growth
In September 2013, G20 Leaders' in St Petersburg committed to develop comprehensive growth strategies for each of their countries by the Brisbane summit in 2014. The challenge for the G20 in 2014 has been to turn that commitment into practical results.
G20 country growth strategies will contain a mix of macroeconomic and structural reforms at the domestic level that suit each country’s circumstances in areas with the greatest potential to lift global growth:
- Increasing quality investment in infrastructure. This will create jobs and boost economic growth and development. The G20 is focusing on finding ways to boost private sector involvement in infrastructure development, including through the Global Infrastructure Initiative agreed by Finance Ministers and Central Bank Governors in Cairns in September.
- Reducing barriers to trade. Many products are not made in one country and sold somewhere else, but cross national borders many times as they are created. Domestic measures to cut the cost of doing business and enhance countries’ ability to participate in global value chains can facilitate increased trade activity, fueling economic growth.
- Promoting competition. Reforms to promote competition - including by cutting red tape - help economies become more productive and innovative and can bring prices closer to production costs, benefiting consumers and encouraging business to become more efficient.
- Lifting employment and participation. More and better jobs - including lifting the number of women in the workforce and reducing youth unemployment - mean a more productive economy, leading to improved livelihoods and increased economic growth.
Strengthening development is an important part of achieving strong, sustainable and balanced growth and ensuring a more robust and resilient economy for everyone. According to the International Monetary Fund, emerging market and developing economies contribute the bulk of economic growth.
Download the policy note Strategies for economic growth.
Download the policy note Lifting G20 GDP by more than 2 per cent above the trajectory implied by current policies over the coming 5 years.
Building Global Economic Resilience
The G20 also has a significant role in ensuring that international and domestic economic policies work together to protect the global economy against future shocks. Restoring business and investor confidence requires addressing the causes of the global financial crisis and ensuring financial stability.
Since 2008, the G20 has worked to manage global economic and financial risks. Implementing these commitments will complement the G20’s growth agenda to ensure growth is strong and sustainable in the long term.
In 2014, G20 members are building the resilience of the global economy by:
- delivering on the G20’s core financial regulation reforms
- modernising the international tax system to keep pace with the changing ways people and companies do business
- reforming global institutions to ensure countries that are reshaping the global economy have a greater voice and keep the institutions relevant
- strengthening energy market resilience, improving the operation of global energy markets for greater efficiency and transparency
- identifying how the G20 can help strengthen the global trading system, which comprises the World Trade Organization and more than 400 bilateral and regional free trade agreements and sector-specific agreements
- addressing corruption.