G-20 outlines plans for global economy

BRISBANE, Australia – Under pressure to jolt the stubbornly lethargic world economy back to life, leaders of G-20 nations finalized a plan today to boost global GDP by more than $2 trillion over five years by investing in infrastructure and increasing trade. The fanfare, however, was overshadowed by tensions between Russian President Vladimir Putin and Western leaders.

The communiqué from the summit of Group of 20 wealthy and emerging economies also revealed that the plan for jumpstarting growth includes the creation of a global infrastructure hub that would help match potential investors with projects. They also aim to reduce the gap between male and female participation in the workforce by 25 percent by 2025.

Speaking at the end of the summit in Brisbane, Australia’s Prime Minister Tony Abbott said countries will hold each other to account by monitoring implementation of their commitments to boost growth.

The International Monetary Fund and OECD will also play a role in monitoring progress and estimating the economic benefits.

The G-20 communiqué says if the $2 trillion initiative is fully implemented, it would lift global GDP by 2.1 percent above expected levels by 2018 and create millions of jobs.

Abbott said countries have agreed more than 800 measures to spur the global economy.

“The G-20 has delivered real, practical outcomes and, because of the efforts that the G-20 has made, this year, culminating in the last 48 hours, people right around the world are going to be better off,” Abbott said.

But with international agencies downgrading their global growth forecasts in recent months, the G-20 faces an uphill struggle to implement its plan. Growth in China and Japan has weakened and Europe is teetering on the brink of a recession.

Despite Abbott’s push to keep the summit focused on the economy, the meeting was overshadowed by tensions between Russian President Vladimir Putin and Western leaders over the escalating conflict between Russia and Ukraine.

Australia, Japan and the U.S. issued a statement condemning Russia for its actions in Ukraine, and Canadian Prime Minister Stephen Harper reacted to an offer of a handshake from Putin by responding, “I guess I’ll shake your hand, but I have only one thing to say to you: You need to get out of Ukraine.”