Today marks the conclusion of the first G20 Finance Ministers and Central Bank Governors Meeting in Sydney, which is the first on Australia’s soil as part of our host year.
In an unprecedented statement, the G20 Finance Ministers and Central Bank Governors committed to implement policies to grow our collective GDP by more than 2 per cent above the current trajectory over the next five years.
Realistically, these policies could mean an extra US$2 trillion in global economic activity and tens of millions of additional jobs.
As the first step to achieving this target, each country will deliver a comprehensive growth strategy as part of the Brisbane Leaders Summit in November.
There is no room for complacency. Each country will play a significant part in achieving our common target.
We know reform is hard. We have to earn economic growth and new jobs.
It will take concrete actions across the G20 to boost investment, trade, competition and employment opportunities, as well as getting our macroeconomic fundamentals right.
Specifically on boosting investment, particularly in infrastructure, the G20 had an extensive discussion about the common challenges we face. There is much we can do to remove constraints to private sector investment by establishing sound and predictable policy and regulatory frameworks.
The G20 also had a discussion on the global economy, particularly with regard to monetary policy. We have committed to enhancing cooperation, increasing communication and building resilience in our financial markets and our economies.
In particular, it’s about enhancing cooperation and communication between countries as well as building resilience in our economies and financial markets.
In regard to the International Monetary Fund (IMF), we must ratify the 2010 reforms, and we encourage the United States to do so before our next meeting.
The situation in Ukraine has been unfolding over the weekend. Individual Finance Ministers have been monitoring developments, though it is chiefly a matter for our Leaders and Foreign Ministers, especially given the fluidity of the situation. It is clear, however, there will be economic consequences of these developments and, in particular, the IMF remains the institution best prepared to help countries in transition.
We also made solid progress in ensuring companies pay their fair share of tax. A Common Reporting Standard was endorsed by the G20, allowing for the automatic exchange of tax information between jurisdictions. This standard will enhance transparency and reduce opportunities for tax evasion and avoidance.
Further, we are on track for a comprehensive global taxation plan on Base Erosion and Profit Shifting.
The communique reflects the shared goals of the Finance Ministers and Central Bank Governors that represent 75 per cent of global trade and 85 per cent of the world economy.
It has set forth a comprehensive agenda for driving a return to strong, sustainable and balanced growth in the global economy.