We share the unofficial translation of the document in English that contains the main conclusions reached by the Ministers of Finance, Presidents of Central Banks and heads of international organizations in the deliberations held during the working days at the Exhibition and Convention Center:
1. The global economic outlook has continued to improve since our last meeting in October 2017, with the broadest synchronized growth increase since 2010 and a rebound in investment and trade. While we welcome this progress, the recent volatility in the markets, despite the strong fundamentals of the global economy, is a reminder of the risks and vulnerabilities. Downside risks persist, and in the medium term, challenges remain to increase growth and make it more inclusive. This is our time to take action to address impediments to structural growth, strengthen our resilience, reduce excessive global imbalances, and mitigate risks. We discussed the main risks to the economic outlook, including financial vulnerabilities, which could reveal themselves with a faster-than-expected tightening of financial conditions, and an increase in economic and geopolitical tensions. We agreed to continue to use all policy tools to support strong, sustainable, balanced, and inclusive growth. We will implement structural reforms to enhance our growth potential. Fiscal policy should be used flexibly, be growth-friendly, and prioritize quality investment, improving economic and financial resilience and ensuring that debt as a percentage of GDP is on a sustainable path. Sound fundamentals, sound policies, and a resilient international monetary system are essential for exchange rate stability, contributing to strong and sustainable growth and investment. Flexible exchange rates, when feasible, can be used to mitigate external shocks. We recognize that excessive volatility or disorderly movements in exchange rates can have adverse consequences for economic and financial stability. We will refrain from competitive devaluations and will not use our exchange rates for those purposes. International trade and investment are important engines of growth, productivity, innovation, job creation and development. We reaffirm our leaders’ conclusions on trade at the Hamburg Summit and recognize the need for greater dialogue and action. We are working to strengthen the contribution of trade to our economies.
2. Technology, including digitalization, is substantially transforming the global economy, given its borderless and intangible nature and its growing ability to automate cognitive tasks. We are developing a common understanding of the nature of the changes and their potential implications. Transformative technologies are expected to bring immense economic opportunities, such as new ways of doing business, new industries, new and better jobs, higher GDP growth, and improvements in living standards. At the same time, the transition creates challenges for individuals, businesses, and governments. These include changes in labour markets, the growing importance of skills and adaptability, and the risk of growing inequality between and within countries. Policy responses, including international cooperation, are necessary to ensure and ensure that the benefits are shared by all. We therefore agreed to develop a range of public policy options to evaluate at our meeting in July.
3. Infrastructure is critical to boost productivity, improve connectivity, sustain long-term inclusive growth, and provide our citizens with physical and digital access to the new economy. Despite its importance, there is a persistent infrastructure financing gap. Public financing of infrastructure is essential, but additional private capital needs to be mobilized to meet global infrastructure needs. To achieve this, we agreed to promote the necessary conditions to help develop infrastructure as an asset class. To guide our work, we endorsed the Roadmap to Infrastructure as an Asset Class, based on the results of previous G20 presidencies and brings together the steps needed to achieve our ambition. The Roadmap identifies seven areas of work, including regulatory frameworks and capital markets, as well as quality infrastructure. In 2018, our focus under the Roadmap will be to improve project preparation, move towards greater standardization of contracts and infrastructure financing instruments, address data gaps, and improve risk mitigation, taking into account country-specific conditions. We look forward to continuing and deepening the dialogue with the private sector.
4. We take note of the report of the Independent Board of the Global Infrastructure Hub recommending the renewal of its mandate. We call for coordination between the 2 current initiatives, sponsored by the Multilateral Development Banks and others, to avoid duplication of efforts.
5. We reaffirm our commitment to continue strengthening the global financial safety net with a strong, quota-based, adequately resourced International Monetary Fund. We are committed to concluding the IMF’s Fifteenth General Review of Quotas and agreeing on a new quota formula as the basis for a realignment of quota shares, resulting in an increase in the share of dynamic economies in line with their relative positions in the world economy, and thereby possibly in the participation of emerging market economies and developing countries as a whole, while protecting the voice and representation of poorer members, for the 2019 Spring Meetings and no later than the 2019 Annual Meetings.
6. International capital flows offer significant benefits, but their size and volatility can pose policy challenges. We will continue to monitor capital flows and refine our understanding of tools to enhance the resilience of the international monetary system. We recognize the importance of macroprudential policies to limit systemic risk. We continue to deepen our understanding of capital flow management measures and the conditions under which they can be effective, taking into account the specific circumstances of each country. We look forward to further work by the IMF on the basis of its Institutional Vision on the Management of Capital Flows, which will help countries take informed action, as well as the results of the Revision of the OECD Code on the Liberalization of Capital Movements.
7. Rising debt levels in low-income countries have raised concerns about debt vulnerabilities in these economies. We agree that capacity building in public financial management, strengthening domestic policies, and improving information exchange could help avoid further debt problems in low-income countries. We advocate for greater transparency, both on the debtor and creditor side. We reaffirm our support for the ongoing work of the Paris Club, as the main international forum for the restructuring of bilateral official debt, aimed at a broader inclusion of emerging creditors. We support the provision of technical assistance by the IMF and the World Bank Group on debt recording and reporting in low-income countries, where necessary, and we look forward to the work of these institutions on debt transparency.
8. The global financial system must remain open, resilient, supportive of growth, and based on agreed international standards. We will continue to carefully monitor and, if necessary, address emerging risks and vulnerabilities in the financial system. We welcome the completion of Basel III, which completes the main elements of post-crisis regulatory reforms. We remain committed to the full, consistent, and timely implementation and completion of reforms and their evaluation to help identify and address any unintended material consequences, ensuring that reforms achieve their objectives. We await the FSB’s assessment of the reforms, including their effects on financing infrastructure investment and incentives for the use of central counterparty in over-the-counter derivatives. We will continue to address the reduction of correspondent banking relationships.
9. We recognize that technological innovations, including those underlying crypto-assets, have the potential to improve efficiency and make the financial system and the economy as a whole more inclusive. Crypto-assets, however, raise issues related to consumer and investor protection, market integrity, tax evasion, money laundering, and terrorist financing. Crypto-assets lack the main attributes that sovereign currencies have. At some point they may have implications for financial stability. We are committed to implementing the FATF standards on crypto-assets, we look forward to the review of these standards by the FATF, and we call for their global implementation. We call on bodies that set international standards to continue monitoring crypto-assets and their risks, in accordance with their mandates, and to assess the necessary multilateral actions.
10. We will continue our work to achieve a fair and modern international tax system and welcome international cooperation and pro-growth tax policies. We will remain committed to the implementation of the Base Erosion and Profit Shifting package and welcome the progress made so far. The impacts of the digitalization of the economy on the international tax system remain key outstanding issues. We welcome the OECD’s interim report that analyzes the impacts of the digitalization of the economy on the international tax system 3. We are committed to working together to achieve a consensual solution by 2020, with an update in 2019.
11. We have made substantial progress in terms of tax transparency. During this year we will have made progress in the implementation of the standards and requirements related to transparency and exchange of information for tax purposes. Jurisdictions that plan to initiate automatic exchanges of financial information for tax purposes in 2018 should ensure that all necessary steps are taken to meet the commitment on time. We call on all jurisdictions to sign and ratify the Convention on Mutual Administrative Assistance in Tax Matters. We await the OECD’s recommendations on how to strengthen the criteria for assessing jurisdictions’ compliance with internationally agreed standards on tax transparency. Defensive measures against listed jurisdictions will be considered. We continue to support assistance to developing countries to develop their tax capacity. We welcome the first conference of the Platform for Tax Collaboration and the efforts made to help developing countries implement the new international tax standards. We also encourage countries to improve tax certainty.
12. We commit to intensify our fight against the financing of terrorism, money laundering and the financing of proliferation. We call for the full, effective and rapid implementation of the FATF standards worldwide. We reaffirm our support for the FATF, as the global anti-money laundering and countering the financing of terrorism standard-setting body, to further strengthen its institutional base, governance and capacity. We call on the FATF to improve its efforts to counter proliferation financing. Today, Federico Sturzenegger, president of the Central Bank, gave a press conference together with the Minister of Finance, Nicolás Dujovne, at the closing of the Ministerial Meeting of Finance and Central Banks of the G20 Argentina that was held at the Exhibition and Convention Center (CEC).
