"We are extremely sceptical about the proposals of some G20 partners for agreeing binding quantitative goals (for growth)," the source said, noting this would be a "slightly antiquated form of economic planning."
- Joe Hockey, Australian Treasurer
Earlier this week Australian policymakers signalled they are getting more confident in the nation's future economic performance, saying weaker Aussie is contributing to growth. Moreover, they pointed out the easing cycle is over. While investment in the mining sector is waning and a boom in a housing market can lead to another bubble, Australian policymakers are looking for another source of economic growth.
During the G-20 meeting Australia is going to introduce its plan on selling state-owned infrastructure in order to help fund new projects in attempt to spur jobs in the struggling to grow country. The meeting is going to become the first of several G-20 events that going to be hosted in Australia during this year. While this idea can sound as a sign of hope, Australian Treasurer Joe Hockey expressed his concerns, saying the officials will have to work on how to translate private sector cash into infrastructure investment, citing country's backlog of projects worth almost A$400 billion. Another alarming sign is the fact huge capital is required for the planned projects to help prepare for an expected 50% surge in domestic population by 2050 and rocketing demand from neighbouring countries. Hockey also seized the opportunity and stressed out that finance ministers will do whatever it takes to grow the global economy by more than IMF's projections of 3.7%.
© Dukascopy Bank SA