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How can the G20 help boost global economies?

​The G20 is coming under increasing pressure to take more aggressive steps to provide some stability for economies around the world and prevent them from falling into a rut.

At the moment, there is a great deal of political uncertainty that is having an impact on the long-term plans of companies. Both the upcoming US elections and Brexit are unclear as to what implications they could mean for the global economy and, as such, many businesses are delaying big investment decisions.

After the G20 meeting earlier this year, a number of finance chiefs at the meeting said that the UK's decision to leave the European Union increased the level of economic risk.

They said the referendum outcome added "to the uncertainty" of the global economy, the BBC reports, but they urged the UK to keep close ties with the EU.

However, the G20 didn't seem to be too concerned about the impact of the UK leaving the EU, although many people fear it could lead to the breakdown of the single market as more countries choose to leave.

Following the meeting in Chengdu, China, the G20 said it had the tools needed to handle the potential economic and financial consequences.

There are many other factors that are causing a level of instability for the global economy besides Brexit, including the refugee problem, US election and geopolitical conflicts.

Despite all this, president of Germany's central bank, Jens Weidmann, said the G20 members are all confident that the global economy will improve in 2016 and 2017.

Even in these times of uncertainty, the G20 - which represents experts from the world's 20 strongest economies - is expected to take steps to help promote strong, sustainable and balanced economic growth.

There have been various suggestions about how this can be achieved.

After the G20 summit in Hangzhou, China, the host nation released a joint statement along with other key members including Russia, Japan, Britain and the US.

In the document, China agreed to work more closely with its trading partners on steel exports, while it also championed free trade and set out key goals for its relations with the Koreas, and Syria.

The authors of the statement all pledged to boost sluggish global growth by encouraging more innovation.

But will this be enough on its own to ensure economic growth for countries around the world?

Canadian prime minister Justin Trudeau has called for growth strategies to be introduced to grow the collective gross domestic product by two per cent by 2018. He also said everyone needed to be able to experience the benefits of free and open trade.

However, this is unlikely to be a realistic goal if foreign competition is able to provide barriers to free trade.
The G20 leaders promised "inclusive growth" and to spread the benefits to those who are left behind because of economic strains or political tensions.

The International Monetary Fund (IMF) released a report about the economic output of the UK, but it warned the G20 to take stronger action and boost public spending on infrastructure to bolster economic growth.

With a harsher message, the France-based Organisation for Economic Co-operation and Development (OECD) urged the G20 members - including the UK - to slow down austerity measures and increase spending on infrastructure projects.

It added that the G20 needed to see that low interest rates and money creation by central banks were not enough for long-term recovery.

It appears as though the G20 has a number of options it could take to help boost growth of global economies and this is likely to be beneficial for business around the world. Regardless of what industry a company is in, improved public spending and increasing confidence about economic stability is bound to bolster revenue and success.