News / Economy

Global Growth Under Scrutiny at Sydney G20 Finance Meeting

FILE - A trader looks up at a chart on his computer screen while working on the floor of the New York Stock Exchange.
FILE - A trader looks up at a chart on his computer screen while working on the floor of the New York Stock Exchange.
Phil Mercer
Global growth is the focus of a meeting in Australia Saturday and Sunday of the world's most influential finance ministers. Members of the G20 grouping of industrialized nations are gathering in Sydney to discuss ways to sustain growth as the United States reduces its multi-billion dollar stimulus package. 
 
The decision by the U.S. Federal Reserve to scale back a policy known as "quantitative easing" - the printing of money to stimulate the economy - will be a theme at the two-day Sydney conference, which starts Saturday.
 
It brings together finance ministers and central-bank governors from the G20 group of nations, although ministers from South Africa, Brazil, Italy, Mexico and the World Bank President will not be attending.
 
The winding down of the stimulus program in the United States has seen investors leave emerging markets, such as India and Indonesia, and bring their money back to the U.S.
 
There is much debate about whether recent volatility in emerging markets was the result of the Federal Reserve’s decision.
 
The head of the International Monetary Fund, Christine Lagarde, said the domestic policies in developing countries should be sound to protect their economies. 
 
“Mind the shop at home. In other words, emerging market economies, you need to look at your fiscal policy, you need to look at your monetary policy, you need to have the house in order to resist the volatility that can be induced by the tapering of the US Fed in part at the moment. But we're also saying to the US authorities, particularly the Fed be mindful of what's happening elsewhere when you do what you have announced,” said Lagarde.
 
The host of the G20 meeting is keen to get an agreement on setting a global growth target, but that could be an area of disagreement. German officials are reportedly uneasy about setting binding goals for growth, insisting it would be an old-fashioned way to manage the global economy.
 
However, the Australian Treasurer, Joe Hockey, argued that financial markets across the G20 economies want certainty from governments as they confront continued volatility.
 
“The global economy cannot afford complacency. We have not got time for reform fatigue. We've seen some signs that the global economy is recovering. Growth in advanced economies, particularly in the United States and Japan looks to be picking up and the Euro area seems to be resuming growth again. But we're not out of the woods ((out of danger)) yet. The global economic recovery is not yet sufficiently strong or broadly based to create enough jobs and to continue lifting people out of poverty,” said Hockey.
 
The Sydney meeting will also discuss ways to combat tax avoidance and how to inject private sector money into infrastructure projects.
 
The G20 accounts for 85 percent of global production, and two thirds of the world's population.  Its aims are to conquer economic uncertainty, foster growth and create jobs.
 
The next G20 heads of government summit will be held in the Australian city of Brisbane in November.

You May Like

Video Is West Doing Enough to Tackle Islamic State?

There is growing uncertainty over whether West’s response to ISIS is adequate More

China Crackdown on Dual Citizens Causes Concern

New policy encourages reporting people who obtain citizenship in another country, but retain Chinese citizenship; move spurs sharp debate More

Video Coalition to Fight Islamic State Could Reward Assad

Losing ground to Islamic State fighters, Syria's government says it is ready to cooperate with international community More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Is West Doing Enough to Tackle Islamic State?i
X
Henry Ridgwell
August 29, 2014 12:26 AM
U.S. President Barack Obama has ruled out sending ground troops to Iraq to fight militants of the so-called Islamic State, or ISIS, despite officials in Washington describing the extremist group as the biggest threat the United States has faced in years. Henry Ridgwell reports from London on the growing uncertainty over whether the West’s response to ISIS will be enough to defeat the terrorist threat.
Video

Video Is West Doing Enough to Tackle Islamic State?

U.S. President Barack Obama has ruled out sending ground troops to Iraq to fight militants of the so-called Islamic State, or ISIS, despite officials in Washington describing the extremist group as the biggest threat the United States has faced in years. Henry Ridgwell reports from London on the growing uncertainty over whether the West’s response to ISIS will be enough to defeat the terrorist threat.
Video

Video Pachyderms Play Polo to Raise Money for Elephants

Polo, the ancient team competition typically played on horseback, is known as the “sport of kings.” However, the royal version for one annual event in Thailand swaps the horse for the kingdom’s national symbol - the elephant. VOA Correspondent Steve Herman in Samut Prakan reports that the King’s Cup Elephant Polo tournament is all for a good cause.
Video

Video Coalition to Fight Islamic State Could Reward Assad

The United States along with European and Mideast allies are considering a broader assault against Islamic State fighters who have spread from Syria into Iraq and risk further destabilizing an already troubled region. But as VOA State Department Correspondent Scott Stearns reports, confronting those militants could end up helping the embattled Syrian President Bashar al-Assad.
Video

Video Made in America Socks Get Toehold in Online Fashion Market

Three young entrepreneurs are hoping to revolutionize the high-end sock industry by introducing all-American creations of their own. And they’re doing most of it the old-fashioned way. VOA’s Julie Taboh recently caught up with them to learn what goes into making their one-of-a-kind socks.
Video

Video Americans, Ex-Pats Send Relief Supplies to West Africa

Health organizations from around the world are sending supplies and specialists to the West African countries that are dealing with the worst Ebola outbreak in history. On a smaller scale, ordinary Americans and African expatriates living in the United States are doing the same. VOA's Carol Pearson reports.
Video

Video America's Most Popular Artworks Displayed in Public Places

Public places in cities across America were turned into open-air art galleries in August. Pictures of the nation’s most popular artworks were displayed on billboards, bus shelters, subway platforms and more. The idea behind “Art Everywhere,” a collaborative campaign by five major museums is to allow more people to enjoy art and learn about the country’s culture and history. Faiza Elmasry has more.
Video

Video Chinese Doctors Use 3-D Spinal Implant

A Chinese boy suffering from a debilitating bone disease has become the first patient with a part of his spine created in a three-dimensional printer. Doctors say he will soon regain normal mobility. VOA’s George Putic reports.
Video

Video Uneasy Calm Settles Over Israel, Gaza Strip

Israel and the Gaza Strip have been calm since a cease-fire set in Tuesday evening, ending seven weeks of hostilities. Hamas, which controls Gaza, declared victory. Israelis were more wart. VOA’s Scott Bobb reports from Jerusalem.
Video

Video India’s Leprosy Battle Stymied by Continuing Stigma

Medical advancements in the treatment of leprosy have greatly diminished its impact around the world, largely eliminating the disease from most countries. India made great strides in combating leprosy, but still accounts for a majority of the world’s new cases each year, and the number of newly infected Indians is rising - more than 130,000 recorded last year. Doctors there say the problem has more to do with society than science. Shaikh Azizur Rahman reports from Kolkata.
Video

Video Scientists Unlock Mystery of Bird Flocks

How can flocks of birds, schools of fish or herds of antelope suddenly change direction -- all the individuals adjusting their movement in concert, at seemingly the same time? British researchers now have some insights into this behavior, which has puzzled scientists for a long time. VOA's George Putic has more.

AppleAndroid

World Currencies

EUR
USD
0.7537
JPY
USD
103.79
GBP
USD
0.6032
CAD
USD
1.0957
INR
USD
60.522

Rates may not be current.