The G20 junket meeting in Cairns finished earlier today with an upbeat target of 1.8% global economic growth by 2018, nearing the goal of 2% adopted back in February, adding USD 2 trillion and millions of jobs,but there were plenty of concerns that the Eurozone’s extended stagnation remains a major issue.
Australian treasurer Joe Hockey, who hosted the event, said
We are determined to lift growth, and countries are willing to use all our macroeconomic levers – monetary, fiscal and structural policies – to meet this challenge
US treasury sec Jack Lew cited “philosophical” differences with some of his counterparts in Europe, especially on the need for near-term stimulus.
The concern that I have is that if the efforts to boost demand are deferred for too long, there’s a risk that the headwinds get stronger and what Europe needs is some more tailwinds in the economy
A view unsurprisingly not shared by German fin min Wolfgang Schaeuble who repeated his mantra on needing structural reforms and strict budget controls.
There was, in the end, no mention in the communique of any co-ordinated forex policy ( not surprising given the vested interests of many participants ) although I’m sure there were some quiet words exchanged in the corridor, and no official mention of the Chinese economic slowdown.
The G20 did decide to maintain diplomatic pressure/sanctions on Russia and President Putin but to leave the door open for him to attend the next summit in November.
Reuters has more here and you can find the full communique here
Thanks Joe for another lovely vacation. See you in November
