Monday 29 September 2014

G20 – An economically significant global institution

G20 leaders, G20 Summit
Set up with the aim of strengthening the global economy and reforming international financial institutions, The Group of Twenty (G20) comprises 19 countries and the European Union. The first G20 Summit was held in the year 2008 and played a vital role in tackling global financial crisis. Its decisive and coordinated actions boosted consumer and business confidence and set the base for the initial stages of economic recovery.

In a recent meeting of G20 leaders, it was said that the global economy still faces persistent weaknesses in demand, and that supply side constraints hamper growth. There is a strong need for strong, sustainable and balanced growth and robust financial sectors to safeguard our economies from these risks and put people into jobs. The Group of Twenty (G20) aspires to increase collective GDP by more than 2 percent by 2018.

The G20 Leaders 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. Furthermore, monetary policy in developed countries continues to support the economic recovery, and is consistent with central banks’ mandates.

The Leaders believe that in the wake of the global financial crisis in 2008, developed nations now have a stronger and more resilient financial system which underpins growth in the global economy. Banks are now generally more capitalized and stronger liquidity arrangements have been put in place.

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