At the weekend G20 meeting ahead of the main G20 meeting in Brisbane in November, the financial leaders of the 20 biggest global economies announced their aim to target economic growth.This includes the generation of $2 trillion (£1.2 trillion) in extra output over a five year period, increasing the GDP of G20 countries by 2% over the current expected levels, and creating millions of new jobs.
U.S Treasury Secretary Jacob Lew said the “G20 members have spoken clearly: boosting growth and demand tops the global economic agenda,” and that the new aim was essential for the future of global economic recovery.
Together the G20 countries represent approximately 85% of the global economy and include hugely developed countries such as the U.S as well as emerging economies such as Saudi Arabia and China. Each G20 member country will contribute a growth strategy to the main G20 November summit, with focus thought to be specifically on increased investment and employment.
The issue of cross-border taxation was also raised at the weekend meeting, with an agreement made on enforcing stricter rules. This is in a bid to prevent companies moving from high tax countries to low tax companies in a profit shift. A set of common standards has been agreed for sharing bank account information across borders and an automatic exchange of information between G20 members will be effective from the end of 2015.