Finance ministers and central bank governors of the Group of 20 Nations on Friday reiterated their commitment to lift and rebalance global demand and achieve exchange rate flexibility.
“We welcome the prospects for global economic growth to strengthen in 2014 but remain vigilant in the face of important global risks and vulnerabilities.
“We are determined to manage these risks and take actions to further strengthen the recovery, create jobs and improve medium-term growth prospects,” G-20 said in a communique issued on the sidelines of the annual spring meeting of the International Monetary Fund and the World Bank.
G-20 members said they would ensure that their comprehensive growth strategies to be presented at the Brisbane Summit outline ambitious, realistic and concrete measures to achieve strong, sustainable and balanced growth.
“We will develop these measures to support growth and create jobs in the context of maintaining financial sector stability and fiscal sustainability, including by addressing tax avoidance and evasion,” it said.
To meet their growth ambition to lift their collective GDP by more than two per cent above the trajectory implied by current policies over the coming five years, G-20 nations said they are committed to developing new actions.
These would build on previous G20 commitments; address identified gaps in the policy settings; lift and rebalance global demand and achieve exchange rate flexibility as well as increase growth potential; and create substantial positive spillovers to each other and the world economy.
“At our September meeting, we will together review our comprehensive growth strategies, to ensure they include action across a broad front including in the areas of investment, employment and participation, trade and competition, in addition to macroeconomic policies,” the joint communique said.
Noting that structural reforms are especially important to achieve their common objective, G-20 said they are focused at this meeting on the importance of reforms which foster greater competition in product and service markets.
“These reforms, along with measures to enhance trade, can foster efficiency and dynamism and lift productivity in our economies, especially when combined with strong competition frameworks and enforcement,” the joint communique said.
G-20 countries expressed their disappointment over the continued delay in progress of the IMF quota and governance reforms agreed to in 2010 and the 15th General Review of Quotas (GRQ) including a new quota formula.
“We reaffirm the importance of the IMF as a quota based institution.
“The implementation of the 2010 reforms remains our highest priority and we urge the US to ratify these reforms at the earliest opportunity.
“We are committed to maintaining a strong and adequately resourced IMF,” it said.
“If the 2010 reforms are not ratified by year-end, we will call on the IMF to build on its existing work and develop options for next steps and we will work with the IMFC (International Monetary and Financial Committee) to schedule a discussion of these options,” the G-20 said.