After signs of stabilization at the end of 2019, global economic growth is expected to pick up modestly in 2020 and 2021. The recovery is supported by the continuation of accommodative financial conditions and some signs of easing trade tensions.
However, global economic growth remains slow and downside risks to the outlook persist, including those arising from geopolitical and remaining trade tensions, and policy uncertainty. We will enhance global risk monitoring, including of the recent outbreak of COVID-19. We stand ready to take further action to address these risks.
We remain committed to use all available policy tools to achieve strong, sustainable, balanced and inclusive growth, and safeguard against downside risks, while implementing structural reforms to enhance our growth potential. Fiscal policy should be flexible and growth-friendly while ensuring debt as a share of GDP is on a sustainable path. Monetary policy should continue to support economic activity and ensure price stability, consistent with central banks’ mandates. We reemphasize that international trade and investment are important engines of growth, productivity, innovation, job creation and development. We reaffirm the conclusions of our Leaders on trade and investment at the Osaka Summit. We will continue to take joint action to strengthen international cooperation and frameworks. We also reaffirm our exchange rate commitments made in March 2018. We will continue to monitor and as necessary continue to tackle financial vulnerabilities. We also reaffirm our commitment to ensure a stronger global financial safety net with a strong, quota-based, and adequately resourced IMF at its center.
We are facing a global landscape that is being rapidly transformed by economic, social, environmental, technological and demographic changes. Our collective work should strive to foster sustainable development and growth, and create the conditions in which all people can live, work and thrive. An inclusive approach to growth can better harness untapped economic potential, help address inequality and empower all segments of society, especially women and youth. Therefore, we agree to develop a menu of policy options that countries can draw from to enhance access to opportunities for all.
We support the Global Partnership for Financial Inclusion (GPFI)’s emphasis on digital financial inclusion of underserved groups, especially women and youth, and small and medium-sized enterprises (SMEs). We welcome the progress on streamlining the GPFI work program and structure and ask the GPFI to update its Terms of Reference as per the endorsed “A Roadmap to 2020”.
We reaffirm our support for the FATF, as the global AML and CFT standard-setting body for preventing and combating money laundering, terrorist financing and proliferation financing. We reiterate our strong commitment to tackle all sources, techniques and channels of these threats. We reaffirm our commitment to strengthening the FATF’s global network of regional bodies, including by supporting their expertise in mutual evaluations, and call for the full, effective and swift implementation of the FATF standards worldwide. We support the ongoing actions by the FATF to strengthen the global response to proliferation financing. We ask the FATF to remain vigilant with respect to emerging financial technologies that may allow for new methods of illicit financing. We look forward to the FATF’s Strategic Review.
We continue to monitor and address the causes and consequences of the withdrawal of correspondent banking relationships, and issues in remittance firms’ access to banking services. Mobilizing sustainable finance and strengthening financial inclusion are important for global growth and stability. The FSB is examining the financial stability implications of climate change. We welcome private sector participation and transparency in these areas.
We emphasize that markets need to transition away from LIBOR to alternative reference rates before end-2021. Therefore, urgent work is needed by the private sector, supported by the public sector, to manage this transition, given the risks that may arise if parties are insufficiently prepared for the expected discontinuation of widely used LIBOR benchmarks. Given the short time remaining for this transition to take place, substantial progress is needed in 2020 to address the potential financial stability risks. We ask the FSB to identify remaining challenges to benchmark transition by July 2020 and to explore ways to address them.
We reiterate our view that technological innovations can deliver significant benefits to the financial system and the broader economy and we support the work on framing supervisory and regulatory issues for the digital era. Accordingly, we welcome the inclusive approach of utilizing the FSB’s regional consultative groups, involving also the respective financial regulation standard setters, to consider the implications associated with the growing entry of BigTech in finance. We also ask the FSB to report on the different approaches to technology-enabled-solutions for regulation and supervision (RegTech and SupTech). We remain vigilant to potential risks arising from financial innovations, including those risks related to financial stability, consumer and investor protection, anti-money laundering (AML) and countering the financing of terrorism (CFT) as well as their macroeconomic implications, including monetary sovereignty issues. Building on the 2019 Leaders’ Declaration, we urge countries to implement the recently adopted Financial Action Task Force (FATF) standards on virtual assets and related providers. We reiterate our statement in October 2019 regarding the so-called ‘global stablecoins’ and other similar arrangements that such risks need to be evaluated and appropriately addressed before they commence operation, and support the FSB’s efforts to develop regulatory recommendations with respect to these arrangements. To that end, we look forward to reports by the FSB, IMF, and the FATF and welcome the FATF’s statement that its AML/CFT standards apply. We recognize the need to enhance global cross-border payment arrangements to facilitate lower-cost and swifter transfers, including for remittances. We ask the FSB, in coordination with the Committee on Payments and Market Infrastructures (CPMI) and other relevant standard-setting bodies and international organizations, to develop a roadmap to enhance global cross-border payment arrangements by October 2020.
We urge the IMF, WBG, and other MDBs to continue their efforts to strengthen borrowers’ capacity in the areas of debt recording, monitoring, and reporting, debt management, public financial management and domestic resource mobilization. We will advance the discussion on the issues highlighted by the IMF-WBG note on the implementation of the G20 Operational Guidelines for Sustainable Financing. We also look forward to an update on the implementation of Institute of International Finance’s Voluntary Principles for Debt Transparency, including on work to identify a data repository. We support ongoing work by the IMF, WBG, and Paris Club on Low-Income Countries (LICs) debt, and the continued efforts of the Paris Club towards the broader engagement of emerging creditors.
We welcome the recent progress made on addressing the tax challenges arising from the digitalization of the economy. We endorse the Outline of the Architecture of a Unified Approach on Pillar One as the basis for negotiations and welcome the Progress Note on Pillar Two, both of which were agreed by the G20/OECD Inclusive Framework on Base Erosion and Profit Shifting (BEPS). We encourage further progress on both Pillars to overcome remaining differences and reaffirm our commitment to reach a consensus-based solution with a final report to be delivered by the end of 2020. We stress the importance of the G20/OECD Inclusive Framework on BEPS agreeing on the key policy features of a global and consensus-based solution by July 2020, which would form the basis of a political agreement. We reiterate the importance of international cooperation to complete this work and ensure tax certainty. We welcome the progress made on implementing the internationally agreed tax transparency standards. We take note of the updated G20/OECD list of jurisdictions that do not comply with such standards. Defensive measures against listed jurisdictions will be considered. We continue to support tax capacity building in developing countries, including coordinating through the Platform for Collaboration on Tax. We call on all jurisdictions to sign and ratify the Multilateral Convention on Mutual administrative Assistance in Tax Matters.
An open and resilient financial system, grounded in agreed international standards, is crucial to support sustainable growth. We remain committed to the full, timely and consistent implementation of the agreed financial reforms. We continue to evaluate the effects of reforms and look forward to the Financial Stability Board (FSB)’s evaluation of the effects of Too-Big- To-Fail reforms. We will continue to identify, monitor and, as necessary, address vulnerabilities and emerging risks to financial stability, including those related to non-bank financing. According to the circumstances, macro-prudential policies can be part of the toolkit. We will continue to work to address unintended, negative effects of market fragmentation, including through regulatory and supervisory cooperation. We will also continue our efforts to enhance cyber resilience and look forward to the FSB’s toolkit of effective practices for cyber-incident response and recovery.
Infrastructure is a driver of economic growth and prosperity, which can be further enhanced through technology. The potential benefits of more widespread use of technology in infrastructure are substantial. It improves investment decisions over the lifecycle, enhances value for money of infrastructure projects, and improves the efficiency in building, operating and maintaining quality infrastructure for the delivery of better social, economic and environmental outcomes. We agree to develop an Infrastructure Technology (InfraTech) Agenda to support the utilization of technology in infrastructure. We reaffirm our previous commitments and efforts, and we will advance our work towards our strategic direction and high aspiration as outlined in the G20 Principles for Quality Infrastructure Investment. We will also continue to advance the implementation of the Roadmap to Infrastructure as an Asset Class, including a focus on the regulatory framework for private sector participation in infrastructure investment.
Accelerating efforts to develop domestic capital markets is essential to support growth and enhance financial resilience and inclusion. We welcome the joint note of the International Monetary Fund (IMF) and the World Bank Group (WBG) on recent developments on local currency bond markets in emerging economies and welcome the stepping up of the ongoing effort
on developing domestic capital markets, especially in emerging markets and developing economies, taking into account country-specific circumstances.
We take positive note of the progress made in following up on the G20 Eminent Persons Group (EPG) proposals, recognizing their multi-year nature. We endorse the G20 Reference Framework for Effective Country Platforms and look forward to an update by Multilateral Development Banks (MDBs) on progress achieved in implementing country-owned pilot platforms in developing countries, including in fragile states. We encourage the implementation of the cooperation agreements between the Multilateral Investment Guarantee Agency (MIGA) and other MDBs to enhance the role of political risk insurance in development finance for a stronger mobilization of private sector resources. In this context, we welcome the Co-Guarantee Platform between the Islamic Development Bank and the African Development Bank. We reiterate our continued support for the Compact with Africa (CwA), with enhanced roles for participating international organizations (WBG, AfDB, IMF) in implementation and strengthened bilateral engagement by G20 partners.
We reiterate the importance of joint efforts undertaken by both borrowers and creditors, official and private, to improve debt transparency and sustainability and encourage further efforts to address debt vulnerabilities. In this regard, we look forward to the IMF-WBG update on the implementation of their multipronged approach for addressing emerging debt vulnerabilities, including an update on their work to deepen analysis of collateralized financing practices, in the context of the review of the IMF’s Debt Limits Policy and WBG’s Sustainable Development Finance Policy.
HRH the Crown Prince directs the authorities to develop main and ring roads in Riyadh
Sunday 1441/6/29 - 2020/02/23
Riyadh, February 23, 2020, SPA -- His Royal Highness Prince Mohammad bin Salman bin Abdulaziz, the Crown Prince, Deputy Prime Minister, Minister of Defense, who is also Chairman of the Board of Directors of the Royal Commission for the City of Riyadh, directed the concerned authorities to embark on developing the main and ring roads in the city of Riyadh, with a view to raising the level of its interior transportation system, by activating the joints of its main parts, and upgrading them to become a major Midddle Eastern center and a hub providing sustainable transport and logistic services, and strengthening its pioneering role as one of the major metropolises of the world, based on the drives of the "Kingdom's Vision 2030" programs.
The program of developing the ring and main roads in Riyadh will include the implementation and development of 400 kilometers of the road network, by adding new roads, raising the level of existing ones and linking them to each other.
The implementation of this program will contribute to achieving a set of returns on the city, among them linking the parts of the city to each other via a network of express and arterial roads, accommodating traffic trips to the city through the ring road network, fulfilling the existing and expected transportation needs, raising the average speed of traffic and reducing time of trips on the city's road network, and directing urban development in line with the city's future vision and strategy.
The directive of His Royal Highness the Crown Prince also comes to implement this program, in light of the city’s increasing population growth, major development and quality projects that contribute to enhancing the city’s economic, urban, environmental, cultural and touristy status, and raising its level of competitiveness as a preferred destination for investments, a center for attracting business and visitors, and upgrading its quality of life to the leading position it deserves among its world counterparts.