G20: extra growth possible

Finance leaders wrapping up a two-day G20 meeting in Cairns unveiled growth proposals on Sunday, saying investors should be matched with infrastructure projects via a global hub to share information.

In a communiqué they said preliminary analysis by the International Monetary Fund (IMF) and the Organization for Economic Cooperation Development (OECD) showed potential to deliver an extra 1.8 percent in "collective" Gross Domestic Product (GDP) through to 2018.

Referring to the planned summit of the 20 major world economies due in Brisbane in mid-November, they said they would "hold each other to account" in reaching goals.

'Significant progress'

German Finance Minister Wolfgang Schäuble said the G20 had come up with a broad consensus on ways to stabilize the world economy and ensure sustainable growth.

IMF chief Christine Lagarde (pictured with Germany's Central Bank Governor Jens Weidmann) said the announcement amounted to "significant progress" despite current geo-political tensions, such as those over Ukraine, which have arisen since ministers met in Sydney in February.

"Promoting economic policies that can contribute to a more robust and job-rich recovery is therefore critical at this stage," Lagarde added.

Earlier this week, the OECD downgraded its world growth forecasts amid a stalling eurozone recovery and weakening emerging economies.

'Growth versus austerity' outdated?

Host Australian finance minister Joe Hockey warned against complacency, saying G20 nations would use all their "levers - monetary, fiscal and structural policies - to meet this challenge."

A high-level G20 source quoted by the news agency AFP said: "There was no longer talk about growth versus austerity. Now it is all about how we can grow our economies."

OECD secretary-general Angel Gurria said a common reporting standard to stop multinational companies from avoiding tax amounted to the biggest change to international tax rules in more than a century.

Eurozone lagging, says US

US Treasury Secretary Jack Lew called on eurozone nations to do more to boost demand and make structural changes.

"The discussions over the weekend have shown a growing recognition that Europe is going to need to do more to get its economy to where it should be," he said in Cairns.

Putin's attendance controversial

The invitation of Russian President Vladimir Putin to the follow-on Brisbane summit in November overshadowed the Cairns gathering.

Australian Foreign Minister Julie Bishop said, "President Putin should turn up and face the international condemnation for its [Russia's] behavior in relation to Ukraine."

Dozens of Australians were among the 298 victims of the April downing of a Malaysian airliner over war-torn eastern Ukraine on July 17.

Ukraine and Western countries accused pro-Russian rebels of shooting it down with a Russian-made missile, a charge denied by Moscow.

Bishop's remark came a day after a Russian delegation -- led by deputy finance minister Sergei Storchak -- joined the two-day meeting of finance ministers and central bankers in Cairns.

Representatives of civil society groups were also present.

ipj/tj (dpa, AFP)