G20 promises more steps to boost global GDP by $2 trillion

G20, a grouping of developed and developing nations, today vowed to take more measures to push the global GDP by an additional 2%, or over $2 trillion, by 2018.

Although as per the IMF-OECD estimates, an incremental growth of 1.8% in global GDP is achievable, pushing it up by 2% would require additional efforts.

"In the lead up to the Brisbane Summit, we will continue to identify a series of additional measures to meet our collective growth ambition. We will hold each other to account in implementing these policy commitments," said a communique issued after the meeting of the G20 Finance Ministers and central bank governors.

The G20 meeting here will be followed by a summit in Brisbane in November. The G-20 represents about 85% of the global economy.

Minister of State for Finance Nirmala Sitharaman, who is representing India at the G20 meeting, told AFP: "At the moment, on the 2% requirement, it is broadly understood that about a 1.8% level is already achievable".

"It is only the balance on which a little more additional push is required and if I go by Saturday's discussion, most of them did agree, and most of them felt committed to giving that additional push, so the additional two percent should be achievable," she added.

As per the update to its World Economic Outlook report, the IMF in July said the global economy would expand 3.4% in 2014 and improve to 4% next year.

The G20 said structural reforms will be important to speed up growth by additional 2%.

"We have developed a set of new concrete measures that will facilitate growth, increase and foster better quality investment, lift employment and participation, enhance trade and promote competition," it said.

Preliminary analysis by IMF-OECD indicates these measures will lift our collective GDP by an additional 1.8% through to 2018, it added.

"These measures, along with macroeconomic policies, are designed to lift global growth and contribute to rebalancing global demand. Implementation of these measures is also essential to foster private sector growth, to give our citizens more opportunities to improve their living standards," it added.

The communique also expressed concern over the uneven global economic growth and said it remains below the pace required to adequately generate much needed jobs.

"Downside risks persist, including in financial markets and from geopolitical tensions. The global economy still faces persistent weaknesses in demand, and supply side constraints hamper growth. We need strong, sustainable and balanced growth and robust financial sectors to safeguard our economies from these risks and put people into jobs," it added.