By Andreas Kissler
CAIRNS, AUSTRALIA--The Group of 20 industrial and developing
nations on Saturday agreed to raise global growth by 2% in the next
five years via a wide-reaching package of structural measures.
The undertaking is a centerpiece of the Australian G-20
presidency and will lead to the Brisbane Action Plan, due to be
announced at the summit on November 15 and 16.
The plan was announced at a conference of G-20 finance ministers
and central bank governors meeting in Cairns ahead of the November
summit to discuss the global economic slowdown as well as measures
to stimulate global growth. The ministers are also discussing how
to modernize the international tax system and prevent harmful tax
practices by large corporations.
"We have the opportunity to change the fate of the world
economy," Australian Treasurer Joe Hockey told his counterparts at
the beginning of the session.
Mr. Hockey said more than 900 proposals from individual states
for the 2% economic growth target were submitted.
The world economy should expand by 3.4% this year, according to
the International Monetary Fund. The fund in July cut its growth
forecast for the year from 3.7% on the lack of robust momentum in
advanced economies.
According to members of the German delegation, the proposals,
which are a mix of structural measures, would only lead to a 1.8%
increase in economic growth, compared with 2013, if they were
implemented today.
German Finance Minister Wolfgang Schäuble backed the 2% target
but also warned they could foster risks to financial stability in
the long-term, according to these sources.
Mr. Schäuble brushed off suggestions Germany wasn't doing enough
to support international growth but, before the conference,
rejected the U.S.'s demands for it to increase spending.
The U.S. has called on export-oriented countries, such as
Germany, to take more measures to stimulate economic growth.
Natalia Drozdiak contributed to this article.
Write to Andreas Kissler at andreas.kissler@wsj.com