Treasurer Joe Hockey has given an outline of key themes for this weekend’s G20 finance ministers’ meeting in Cairns.
Treasurer Joe Hockey says the G20 is close to putting together a set of measures that will help lift global growth by a further two per cent.
Finance ministers and central bankers from the world’s largest economies will meet in Cairns this weekend.
At their meeting in February in Sydney, the first under Australia’s 2014 presidency, Mr Hockey struck a historic deal with his counterparts that set a two per cent growth target above current projections, over the next five years.
“We are not too far away from the two per cent. There is still work to be done,” he told a business conference in Sydney hosted by Bloomberg on Tuesday.
Come the Brisbane leaders summit in November, every G20 member will present a comprehensive listing of its new policy actions to lift growth and create jobs, he said.
His comments came as the Organisation for Economic Cooperation and Development warned that the tepid rate of global growth means unemployment will remain high and trade will remain sluggish.
“The continued failure of the global economy to generate strong, balanced and inclusive growth underlines the urgency of ambitious reform efforts,” the OECD said in an assessment prepared for the Cairns meeting.
Mr Hockey concedes that meaningful reform is never easy, but says it is the only successful formula that delivers greater prosperity around the world.
This weekend’s meeting will also discuss financial regulations and recommendations made by the global Financial Stability board.
Its new proposals will be aimed at ways to protect taxpayers when large global banks fail.
These institutions are so large, complex and interconnected that their failure can cause significant dislocation in the financial system, disrupt global economy and risk massive taxpayer losses.
The meeting will also look at so-called “shadow banking”, to make sure such entities that perform bank-like functions do not become a new source of risk.