G20 pledges coordinated actions for strong global economic recovery

G20 grouping, including India, the US, and the EU, on Wednesday pledged to take coordinated actions to ensure strong and resilient global recovery delivering jobs and growth.

The G20 Bali Leaders' Declaration was issued after the conclusion of the two-day summit, which was attended top global leaders.

At today's critical moment for the global economy, it is essential that the G20 undertakes tangible, precise, swift and necessary actions, using all available policy tools, to address common challenges, including through international macro policy cooperation and concrete collaborations, the declaration said.

"In doing so, we remain committed to support developing countries, particularly the least developed and small island developing states, in responding to these global challenges and achieving the SDGs.

"In line with the Indonesian G20 Presidency theme - Recover Together, Recover Stronger - we will take coordinated actions to advance an agenda for a strong, inclusive and resilient global recovery and sustainable development that delivers jobs and growth," it said.

Earlier in the day, Indonesia handed over the G20 presidency to India for the coming year.

The G20 comprises 19 countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the UK, the USA, and the European Union (EU).

Together, they account for over 80 per cent of the global GDP, 75 per cent of international trade and two-thirds of the world population.

The grouping, the declaration said, will stay agile and flexible in macro-economic policy responses and cooperation.

"We will make public investments and structural reforms, promote private investments, and strengthen multilateral trade and resilience of global supply chains, to support long-term growth, sustainable and inclusive, green and just transitions. We will ensure long-term fiscal sustainability, with our central banks committed to achieving price stability," it said.

The leaders vowed to protect macroeconomic and financial stability and remain committed to using all available tools to mitigate downside risks, noting the steps taken since the Global Financial Crisis to strengthen financial resilience and promote sustainable finance and capital flows.

Another important pledge in the declaration is: "Take action to promote food and energy security and support stability of markets, providing temporary and targeted support to cushion the impact of price increases, strengthening dialogue between producers and consumers, and increasing trade and investments for long-term food and energy security needs, resilient and sustainable food, fertilizer and energy systems".

"To support our collective ambition to recover together, recover stronger, we commit to well calibrated, well-planned, and well-communicated policies to support sustainable recovery, with due consideration to country-specific circumstances," it said.

The G20 summit took place at a time of climate and energy crises, compounded by geopolitical challenges.

"We are experiencing volatility in energy prices and markets and shortage/disruptions to energy supply. We underline the urgency to rapidly transform and diversify energy systems, advance energy security and resilience and markets stability, by accelerating and ensuring clean, sustainable, just, affordable, and inclusive energy transitions and flow of sustainable investments," the declaration said.

The leaders stressed the importance of ensuring that global energy demand is matched by affordable energy supplies.

The also reiterated their commitment to the swift implementation of the OECD/G20 two-pillar international tax package.

"We call on the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) to finalize Pillar One, including remaining issues and by signing the Multilateral Convention in the first half of 2023, and to complete the negotiations of the Subject to Tax Rule (STTR) under Pillar Two that would allow the development of a Multilateral Instrument for its implementation," it said.

"We also welcome the Crypto-Asset Reporting Framework and the amendments to the Common Reporting Standard, both of which we consider to be integral additions to the global standards for automatic exchange of information," the leaders said.