(VOVworld) – A communiqué released at the G20 Summit in Australia of the world's 20 advanced and emerging economies set an ambitious target to lift the G20's GDP by at least two per cent by 2018. Analysts say it won’t be easy.

G20 leaders agreed on an ambitious plan to boost global economy by 2018

The G20 communiqué pledged to build a vigorous and resilient global economy and strengthen global institutions. It endorsed the Global Infrastructure Initiative and the 2015-2016 G20 Anti-Corruption Action Plan, and set goals of reducing the gender gap in workforce participation by 25 per cent by 2025 and strengthening global financial organizations by reforming the International Monetary Fund (IMF) and persuading the US to ratify the Reform Plan approved by almost all IMF members in 2010. Analysts say if these initiatives are fully implemented, the G20’s GDP will increase 2.1% in the next 5 years, adding 2 trillion USD and millions of jobs to the global economy.

Positives

Australian Prime Minister Tony Abbott praised the G20’s consensus on the communiqué. British Prime Minister David Cameron said an agreement to boost free trade has been unlocked, a breakthrough for the G20. IMF General Director Christine Lagarde said the G20 summit was useful.

The formation of a number of economic coalitions, including the Trans-Pacific Partnership (TPP) and several bilateral free trade agreements, will create momentum for G20 members to carry out their commitments. The Australia-China Free Trade Agreement signed on November 17 is expected to add 16 billion USD to the Australian economy next year. Germany and France, the EU’s leading economies, barely escaped a new recession in the third quarter of this year. Statistics released on November 14 showed that Germany’s GDP increased 0.1% after decreasing 0.1% three months ago. France’s GDP grew 0.3% in the third quarter.

Negatives

The IMF General Director said implementation of the initiatives will need close monitoring. Some analysts say the target is unfeasible because the global economic recovery is still weak and unstable. Slowing economic growth, political tensions, and out of control corruption in many countries could obstruct the target. Japan's economy shrank for a second consecutive quarter, marking a technical recession in the world's third largest economy. British Prime Minister David Cameron noted that British’s economic growth rate also slowed in the third quarter. Mutual sanctions between Russia and the EU deriving from the Ukraine crisis have hurt their growth rates.

Implementing the G20 growth stimulus plan will call on members to apply some 800 reform measures on economics, labor markets, and trade barriers.