The leaders of the 20 major economies are predicting that the world economy will start to grow again by the end of 2010. The leaders made their forecast in a draft communique ahead of the G-20 summit due to start Thursday. It was published in the Financial Times on Sunday.
The 24-point draft document from G20 leaders reiterates pledges to avoid protectionism. But it does not detail a global approach to a fiscal stimulus package. The communique says worldwide fiscal measures will increase global output by more than two percentage points and create more than 20 million jobs.
The newspaper reports that the G20 leaders showed their determination to restore growth and prevent a repeat of the current crisis. They are also committing to reform of markets and institutions for the future. They stated their belief to an open world economy, to ensure sustainable globalization with rising prosperity for all.
The communique also says the G20 are promising to work together to avoid unintended impacts of massive capital injections into the economy on other countries.
It says tax havens will face sanctions... and will be named and shamed in a separate document to be published at the summit in London. It asks banks to improve the quality and quantity of their capital. But it says banks' capital requirements should not be strengthened until a significant and sustained economic recovery is assured.
British Prime Minister Gordon Brown and the country's treasury department have not commented on the report.
(CCTV March 31, 2009)
