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Page added on September 22, 2014

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$2 trillion growth goal called feasible

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Finance chiefs from the 20 largest economies on Sunday said that they are close to reaching their goal of boosting world GDP by more than $2 trillion over the next five years and will focus on infrastructure investment to help reach the target.

Australia’s treasurer, Joe Hockey, who hosted the Group of 20 meeting in the northern Australian city of Cairns, said the G-20 finance ministers and central bankers had agreed to more than 900 policy initiatives to meet the goal they set in February during a gathering in Sydney.

The G-20, which represents about 85 percent of the global economy, said an analysis of those initiatives shows they should boost the combined gross domestic product of member countries by 1.8 percent above levels expected for the next five years, just short of the group’s target of 2 percent.

In July, the International Monetary Fund downgraded its economic forecast, estimating the world economy would expand 3.4 percent this year, rather than the 3.7 percent it had previously predicted — due to weaker growth in the United States, Russia, and other developing economies.

Last week, the lending organization amped up pressure on the G-20 to take action on its global growth commitment, calling for decisive structural reforms. On Sunday, the IMF’s managing director, Christine Lagarde, said the G-20 would need to concentrate on labor market measures and infrastructure in order to reach its 2 percent growth goal by 2018.

‘‘They are almost done, but need to do a bit more,’’ Lagarde told reporters after the meeting.

Hockey said the group had agreed to shift its focus from government-led growth to private sector-led growth, particular from additional investment in infrastructure.

In a communique issued after the meeting, the G-20 outlined a Global Infrastructure Initiative, which would include the development of a database to help match potential investors with projects.

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In a communique issued after the meeting, the G-20 outlined a Global Infrastructure Initiative, which would include the development of a database to help match potential investors with projects.

The group also warned that while economic conditions had improved in some key economies, global growth remained uneven and below the pace necessary to generate critically needed jobs.

Hockey said the group would deliver ‘‘concrete outcomes’’ by the time the main G-20 summit is held in November in Brisbane.

‘‘We will now redouble efforts and hold each other to account on meeting this target as we go forward,’’ he said.

The G-20 represents the world’s major industrialized and developing countries. Its members are Argentina, Australia, Brazil, Britain, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, South Korea, Russia, Saudi Arabia, South Africa, Turkey, the United States, and the European Union.

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12 Comments on "$2 trillion growth goal called feasible"

  1. Northwest Resident on Mon, 22nd Sep 2014 5:09 pm 

    They must pay the G-20 guys to dream big.

  2. ghung on Mon, 22nd Sep 2014 5:44 pm 

    Relax. Two trillion dollars doesn’t buy what it used to.

  3. Shaved Monkey on Mon, 22nd Sep 2014 6:01 pm 

    Joe Hockey delivers his “the end of age of entitlement” speech and thinks the future is about rich people making more money and poor people expecting less from them.
    He is in for a surprise.
    When he finally realises the the end of the age of entitlement is the end of growth and it pays no one any favours.

  4. Plantagenet on Mon, 22nd Sep 2014 6:40 pm 

    If oil prices stay low then the G20 has a chance of hitting their GDP growth targets. But if oil production growth stops or starts to decline (i.e. peak oil) then the G20 and every other economy on earth is going to be in a world of hurt.

  5. Perk Earl on Mon, 22nd Sep 2014 7:59 pm 

    The mantra of growth has no bounds. All hail growth. Kneel before our God, Growth. May we always come up with more ideas to spur growth, ad infinitum. /sarc off

  6. DMyers on Mon, 22nd Sep 2014 8:12 pm 

    The crisis of the IMF downgrade has become the opportunity for these pricks to make themselves seem useful. All this time, they could have stepped in and turned around our non-recovering economy, and they didn’t. But now is the time to strike.

    Although they can do nothing whatsoever to raise world GDP, other than by manipulating the numbers, they’re going to pretend they can, and who the hell is going to stand up and question them?
    Look at what they’ve accomplished already: “..central bankers had agreed to more than 900 policy initiatives to meet the goal they set in February…”

    These people have had the decency to agree on something, 900 times. Almost sends chills down my spine. Policy initiatives are awesome movers of the world. I’ve heard it said that one policy initiative has the power of ten bulldozers.

    Three trillion in five years, well that sounds good. I’m wondering how much of it I might take home. Even a sliver of something that big could buy a man’s retirement. I’m sure they have “a rising tide raises all boats” attitude about it.

    We can all plan to be a little better off five years down the road. Don’t worry.

  7. GregT on Mon, 22nd Sep 2014 9:22 pm 

    “The mantra of growth has no bounds.”

    The mantra may not, but eventually we are going to hit the hard cold rim of the Petri dish, and when we do……………

  8. Makati1 on Mon, 22nd Sep 2014 10:32 pm 

    Whether a roll of Charmin dollars is worth $100 USD today or $1,000 USD in 5 years, that is the ONLY way the world GDP will grow. That same ‘growth’ is all we have had since at least 2008 and probably since 1970.

    Today a trillion USD will buy you 3 billion pairs of Nike Mercurial Superfly iD Men’s Soccer Cleat @ $315/pr. (I had to look this up as I never buy brand names, or look at their prices. For that price, I can buy 16 pairs of sneakers that will last just as long and don’t have to worry about being mugged for them in any city.)

    In 5 years that same shoe (if Nike is still in business) Will probably cost $500/pr and you can only buy 2 billion pairs. Or, if we go Weimer or Zimbabwe, it may only buy one pair. Charmin dollars don’t even make good Charmin. Better to invest in a few cases of the real thing. ^_^

  9. Makati1 on Mon, 22nd Sep 2014 10:54 pm 

    Kinda off subject, but more important:

    http://www.globalresearch.ca/how-economic-sanctions-are-promoting-bilateral-trade-and-finance-outside-the-realm-of-the-us-dollar/5403544

    We seem to be fast approaching the hockey-stick part of the non-dollar international trade graph.

  10. Perk Earl on Mon, 22nd Sep 2014 11:14 pm 

    “The mantra may not, but eventually we are going to hit the hard cold rim of the Petri dish, and when we do……………”

    ,we’ll say, “Damn, we were no smarter than yeast”!

  11. clueless on Tue, 23rd Sep 2014 1:28 am 

    Goal is to reach 2 Trillion dollars GDP accdng. to G20 (which represents 85% of global economy) in 5 for the entire world. America”s debt is $17 tril..How do you think US can be able to pay it”s debt ever?
    I know what you’re thinking.
    NO WAY OUT.

  12. Davy on Tue, 23rd Sep 2014 6:46 am 

    Perk, I see natural laws in effect in all ecosystems including human ecosystems. So yes you are right and in a way leaving out a point. It is not we are no smarter than yeast but nature is smarter than us. It may be better to say we are a part of nature and not in a separate exceptional position of living in nature but not subject to all her laws. There is nothing that indicates we can transcend nature through knowledge and technology but that is what we think and live. So just as yeast is not smarter than nature we are not either.

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