clear
Wednesday July 29th, 2015 5:33AM

G-20 vows to boost world economy by $2 trillion

By The Associated Press
SYDNEY (AP) -- Finance chiefs from the 20 largest economies agreed Sunday to implement policies that will boost world GDP by more than $2 trillion over the coming five years.

Australian Treasurer Joe Hockey, who hosted the Group of 20 meeting in Sydney, said the commitment from the G-20 finance ministers and central bankers was "unprecedented."

The world economy has sputtered since the 2008 financial crisis and global recession that followed. Progress in returning economic growth to pre-crisis levels has been hampered by austerity policies in Europe, high unemployment in the U.S. and a cooling of China's torrid expansion.

The centerpiece of the $2 trillion commitment made at the Sydney meeting is to boost the combined gross domestic product of G-20 countries by 2 percent above the levels expected for the next five years, possibly creating tens of millions of new jobs. World GDP was about $72 trillion in 2012.

The G-20 combines the world's major industrialized and developing countries from the United States to Saudi Arabia and China, representing about 85 percent of the global economy.

The communique from the meeting said signs of improvement in the global economy are welcome but growth remains below the rates needed to get people back into work and to meet their aspirations.

The G-20 said it would "significantly raise global growth" without overtaxing national finance through measures to promote competition and increase investment, employment and trade.

As an initial step toward achieving the $2 trillion target, each country will present a comprehensive growth strategy to a summit of leaders scheduled for November in the Australian city of Brisbane.

The International Monetary Fund forecasts the world economy will grow 3.7 percent this year. It said the G-20 plan could lift annual world economic growth by half a percentage point for the next five years.

U.S. Treasury Secretary Jacob Lew said the agreement is significant and crucial to "turning the next page" in the global economic recovery.

"G-20 members have spoken clearly: boosting growth and demand tops the global economic agenda" Lew said in a statement.

Hockey, the Australian treasurer, said there was intensive discussion about the challenges each country faces in boosting investment, particularly in infrastructure. He said there is much that governments can do to boost private investment by having predictable policies and regulations.

On monetary policy, G-20 members said they recognized it needs to remain accommodative for growth in many industrialized countries but should return to normal settings "in due course" depending on the outlook for inflation and GDP.

Central banks in Europe, the United States and Japan are all maintaining lavishly easy monetary policy in an attempt to nurture economic recovery.

The Federal Reserve's recent decision to begin scaling back its monetary stimulus jolted global financial markets, particularly stocks which benefited in the past several years from record low interest rates and money created by bond buying policies.

The meeting didn't make any specific commitments to helping developing nations manage volatility in their financial markets stemming from the Fed's stance. It said G-20 nations should consistently communicate their actions and cooperate in "managing spillovers" to other countries.

The G-20 members are Argentina, Australia, Brazil, Britain, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, South Korea, Russia, Saudi Arabia, South Africa, Turkey, the U.S. and the European Union.
© Copyright 2015 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Judge denies motions to move, delay Tsarnaev trial
Lawyers for Boston Marathon bombing suspect Dzhokhar Tsarnaev asked a federal appeals court Wednesday to overturn a judge's decision to not move his upcoming trial out of state.
10:02PM ( 6 months ago )
High court to adopt electronic filing of cases
The Supreme Court is belatedly developing an electronic filing system similar to those used in courts around the country, Chief Justice John Roberts said Wednesday in his annual end-of-year report.
7:57PM ( 6 months ago )
Storm brings snow, cold to West for New Year's
A blustery winter storm dumped snow and ice across the West on Wednesday, making driving treacherous in the mountains from California to the Rockies and forcing residents and party-goers in some usually sun-soaked cities to bundle up for a frosty New Year's.
5:19PM ( 6 months ago )
U.S. News
State DOT awards $48M contract for NE Ga. road project
The state Department of Transportation has awarded a $47.8 million contract for nine miles of work on a northeast Georgia road.
9:37AM ( 6 months ago )
Business News
Grass fire impacts rush hour traffic on 985
Rush hour traffic on I-985 was slowed by a grass fire Wednesay afternoon with one lane closed while firefighters fought the blaze.
10:19PM ( 6 months ago )
Hall County conviction, sentencing to be reviewed by SCOGA
The State Supreme Court has agreed to hear the appeal of a Hall County man when they reconvene in January.
2:37PM ( 6 months ago )
Maysville man dies from Banks County wreck
The Georgia State Patrol reports that alcohol and/or drugs were factors a single-vehicle wreck that claimed the life of a Maysville man in Banks County Tuesday night.
11:07AM ( 6 months ago )
Local/State News
GOP leader regrets talk to white supremacists; party leaders rally around him
House Republican leaders rallied around one of their own, Whip Steve Scalise, on Tuesday after he said he regrets speaking 12 years ago to a white supremacist organization and condemns the views of such groups.
6:08PM ( 6 months ago )
Conviction of Putin foe sets off protest in Moscow
President Vladimir Putin's chief political foe was convicted along with his brother on Tuesday in a fraud case widely seen as a vendetta by the Kremlin, triggering one of Russia's boldest anti-government demonstrations in years.
6:03PM ( 6 months ago )
More Georgians signing up for health insurance
A federal report says more Georgians have selected health insurance plans through a federally facilitated marketplace.
4:16PM ( 6 months ago )
Politics
The Latest on missing boys: Search crews enter 5th night
JUPITER, Fla. (AP) — The latest on the search for the two Florida teens who went missing while on a fishing trip off Florida's Atlantic coast:7:35 p.m.The Coast Guard says it is moving forward with a...
7:41PM ( 9 hours ago )
Kerry implores Congress to back Iran nuclear deal
WASHINGTON (AP) — Secretary of State John Kerry warned skeptical lawmakers not to nix the contentious nuclear deal with Iran, insisting that it includes strict inspections and other safeguards to dete...
7:34PM ( 9 hours ago )
Court orders EPA to redo air-pollution limits in 13 states
WASHINGTON (AP) — A federal appeals court on Tuesday ordered the Environmental Protection Agency to relax some limits it set on smokestack emissions that cross state lines and taint downwind areas wit...
6:16PM ( 11 hours ago )
Short-term highway deal punts another fight until fall
WASHINGTON (AP) — House and Senate Republicans acknowledged Tuesday a long-term highway deal is out of reach for now, and embraced a three-month extension that will punt yet another messy fight into t...
4:30PM ( 13 hours ago )
Strong home sales, limited supply lift US home prices in May
WASHINGTON (AP) — U.S. home prices rose steadily in May, pushed higher by a healthy increase in sales this year.The Standard & Poor's/Case-Shiller 20-city home price index climbed 4.9 percent in May f...
12:05PM ( 17 hours ago )