G20 vows to boost global economic growth by 1.8 pct

SYDNEY  (Xinhua) - The G20 finance summit ended Sunday in Cairns, Australia with a commitment to a 1.8 percent growth target designed to boost the world economy by $2 trillion.

The world's most powerful finance ministers announced plans to add 1.8 percent to their combined economic output, a move that will create millions of jobs.

Australian Treasurer Joe Hockey, who was chairing the G20 meeting, said the IMF and OECD have looked at over 900 measures put forward by countries, and estimated that these efforts could lift global GDP by 1.8 percent through to 2018.

"We want to create the environment for private sector-led growth, and provide our citizens with more jobs and better living standards," he said.

Hockey said investment in infrastructure was one of the core G20 growth strategies.

"We have focused on lifting investment in infrastructure because of its potential to address demand weakness. It is also a key driver for improving productivity," he said.

"We have now agreed to progress a multi-year Global Infrastructure Initiative. This initiative consists of an integrated set of actions to increase quality infrastructure investment across the G20 and beyond.

"We have committed to developing a database of infrastructure projects to help match potential investors with projects."

Hockey said the G20 meeting agreed that monetary policy should continue to support the economic recovery, and that it should particularly address deflationary pressures where these are evident.

"Ministers and central bank governors are all too aware of the potential for a buildup in financial risks arising from prolonged, low interest rates," he said.

"All are committed to closely monitoring these risks and building even stronger economic policy frameworks, which are the ultimate defence against the damaging impact of renewed financial market volatility."

Hockey said the G20 was unified in its mission to modernise global tax rules and close gaps that have emerged in recent years.

These new tax rules are aimed at multi-national companies who are using legal loopholes to avoid paying tax.