Finance officials from across the globe from the 20 biggest economies made an agreement on February 23, 2014 to implement policies which will help in boosting world GDP by over $2 trillion in the next five years. Joe Hockey – the Australian Treasurer and the host of the Group of 20 meeting in Sydney – explained that the commitment shown by the G20 finance ministers and central bankers was ‘unprecedented’. It has been noticed that the world economy has crumbled since 2008, which has resulted in global recession and financial crisis.
Moreover, progress when it comes to returning economic growth to the levels of pre-crisis has been affected by austerity policies in Europe, as well as a cooling of China’s torrid expansion and high unemployment in the United States. The G20 brings together the biggest industrialized and developing countries in the world, from the United States to China and Saudi Arabia, which account for 85 percent of the global economy.
The G20 assured that it will significantly help in increasing global growth. During the meeting, the officials said that improvements in the global economy are very much desired, but growth stays under the rates which are required to get people back to their job positions and to meet their goals.
In order to reach the target, every country has to present a comprehensive growth strategy to the leaders.
Photo Credits: Brookings
