ANTALYA (Turkey): As global trade growth remains below pre-crisis levels, G20 leaders reaffirm their strong commitment to better coordinate efforts to reinforce trade and investment through adjusted growth strategies.
The Antalya Action Plan, comprising the adjusted growth strategies and implementation, schedules for key commitments, reflect G20’s determination to overcome global economic challenges.
In concluding the Antalya G20 Summit here, leaders also reiterated their commitment to achieve its collective G20 Gross Domestic Product (GDP) by an additional two per cent by 2018 as announced in Brisbane last year.
The commitments were stated in a communique released at the end of the 10th summit which will convene in Hangzhou, China in September 2016 and Germany in 2017.
Throughout the two-day deliberations, the summit took note of the uneven global economic growth which fell short of expectations despite the positive outlook in some major economies.
Risks and uncertainties in financial markets remain and geopolitical challenges are increasingly becoming a global concern while a shortfall in global demand and structural problems continue to weigh on actual and potential growth.
To achieve strong, sustainable and balanced growth, G20 Leaders said they would continue to implement sound macroeconomic policies in a cooperative manner while their monetary authorities would ensure price stability and support economic activity.
“We reiterate our commitment to implement fiscal policies flexibly to take into account near-term economic conditions, so as to support growth and job creation while putting debt as a share of GDP on a sustainable path,” the leaders said, stressing on their commitment to promote global rebalancing.
Against the background of risks arising from large and volatile capital flows, G20 will promote financial stability through appropriate frameworks, including by ensuring an adequate global financial safety net.
In the meantime, its growth strategies will include measures to support demand and structural reforms to lift actual and potential growth, create jobs, promote inclusiveness and reduce inequalities.
“We have made significant progress towards fulfilling our commitments since last year, implementing half of our multi-year commitments.
“Analysis by the International Monetary Fund, the Organisation for Economic Cooperation and Development and World Bank Group indicates that our implementation so far represents more than one third of our collective growth ambition.
“Yet, we also acknowledge that more needs to be done,” they said.
In terms of investments, G20 has developed ambitious country-specific investment strategies which would contribute to lifting the aggregate G20 investment to GDP ratio, by an estimated one per cent by 2018.
“We also considered alternative financing structures, including asset-based financing and simple and transparent securitisation to facilitate better intermediation for small and medium enterprises (SMEs) and infrastructure investment,” they said.
Leaders also welcomed the Joint Action Plan on SME Financing, the G20/OECD High-Level Principles on SME Financing as guidance and the establishment of the private sector-led World SME Forum, a new initiative that will serve as a global body to facilitate the contributions of SMEs to growth and employment.
In enhancing the resilience of the global financial system, the grouping has completed further core elements of the financing reform agenda in finalising the common international standard on total-loss-absorbing-capacity for global systemically important banks.
“We will continue to monitor and if necessary, address emerging risks and vulnerabilities in the financial system, many of which may arise outside the banking sector,” they said.
In this regard, G20 will further strengthen oversight and regulation of shadow banking to ensure resilience of market-based finance, in a manner appropriate to the systemic risks posed.