G20 plan exceeds 2 percent growth as leaders commit to extra economic reforms

16 November 2014

Prime Minister
The combined growth strategies of G20 member nations presented at the Brisbane Leaders’ Summit will equate to 2.1 per cent new growth and inject an additional $2 trillion into the world economy and create millions of jobs.

The Brisbane Action Plan contains close to 1,000 measures, including more than 800 new ones, which the IMF and OECD estimate will boost the collective GDP of G20 nations by 2.1 per cent by 2018.

This is new growth, over and above business as usual trends.

Early in Australia’s G20 Presidency we set an ambitious target of getting all countries to commit to measures that would deliver at least 2 per cent additional GDP over five years.

The benefits of that growth will be felt worldwide, not just in G20 member nations.

Individual country actions range from employment measures to infrastructure investment, as well as actions to expand trade, increase competition and reduce the regulatory burden on business.

The Brisbane Action Plan and individual country growth strategies and employment plans have been made public so people around the world can see our commitments, hold us to account and witness our progress.

In addition, leaders committed to close the gender gap in labour force participation by 25 per cent by 2025. If successful, this will bring more than 100 million women into the global labour force, further increase global growth, deliver financial independence to millions and help reduce poverty and inequality.

Leaders also agreed to a Global Infrastructure Initiative that will help address the $70 trillion gap in infrastructure needed by 2030 to improve productivity and living standards.

Governments cannot afford to foot this bill on their own.

New sources of investment must be found.

A Global Infrastructure Hub headquartered in Sydney, will drive the G20’s work on infrastructure by bringing together governments, the private sector, multinational development banks and other international organisations.

G20 and non-G20 countries will make use of the Hub’s data, information, ideas and networks to help lift infrastructure investment globally.

G20 members also agreed to tackle base erosion and profit shifting and to share tax information by endorsing a new standard on the exchange of information between tax authorities.

This will make sure that big business pays tax in the same place it earns its profits. It will help secure our revenue bases and restore integrity and fairness to the global tax system.

Free trade is good for all of us. It drives growth and creates jobs.

Leaders have put on the table domestic reforms to make it easier to trade.

We agreed on the importance of good quality trade agreements to make our economies more competitive and we began a discussion about how the World Trade Organization could work better to deliver the growth we need.

Australia has pushed hard for G20 leaders to focus on the importance of energy to economic development, particularly for developing economies.

It is critical that global institutions reflect the changing nature of the global energy markets and leaders have agreed the G20 Principles on Energy Collaboration. These will be an important foundation for the G20’s ongoing efforts.

G20 leaders support strong and effective action to address climate change.

Consistent with the UNFCCC, our actions will support sustainable development, economic growth and certainty for business and investment.

Leaders also endorsed significant measures which will help strengthen the global financial system. These measures will help ensure the circumstances which led to the global financial crisis do not occur again.

Banks are now better capitalised, derivative markets are safer and work has progressed to better protect taxpayers if large banks fail. We have reduced risks in the shadow banking sector.

Our focus now is to get on with the job of implementing our commitments while remaining alert to new and emerging risks.

We have also made progress on anti-corruption, energy and sustainability, development and reform of international economic institutions.

Leaders also expressed deep concern about humanitarian and economic impact of the Ebola outbreak in Guinea, Liberia and Sierra Leone.

We support the international response and have committed to do all we can to contain and respond to the crisis.

I thank my fellow G20 leaders for their support and willingness to prioritise reforms that underpin economic growth and job creation.

16 November 2014