Last year, global growth increased again, and more recently has received a further stimulus by the slump in oil prices. But some regions still suffer from sluggish growth. According to the January IMF WEO Update, the world economy is expected to grow by 3.5 percent in 2015 and by 3.7 percent in 2016. ILO expects global unemployment to rise by 3 million in 2015. The WTO in September 2014 revised downwards its forecast of global trade growth to a moderate 3.1 % in 2014 and a slightly higher 4.0 % in 2015. Geopolitical risks have increased in various regions of the world; they constitute a significant burden for global economic development.

At a time of moderate and uncertain growth prospects governments have to strengthen reforms and pro-active measures in order to support recovery and ensure growth. Ambitious reforms can help to create more productive, more dynamic and more inclusive economies and societies. According to the most recent OECD Going for Growth report, reforms implemented since the early 2000s have contributed to raising the level of potential GDP per capita by around 5% on average across countries. At the same time, recent work has also indicated that growing inequality in many countries requires more attention.

In this respect, the G7 as a community of shared values and as key actors in the world economy has a special responsibility. Germany is committed to use its G7 presidency in 2015 to discuss key issues regarding foreign, security, climate, trade and development policy and to bring forward new initiatives in the fields of environmental, energy and health policy as well as women’s empowerment.

Our common approach of international economic policy cooperation has mitigated the crisis’ consequences, set new standards and fostered growth prospects. Institutional as well as informal linkages between national governments, international organizations and other stakeholders have been strengthened in the course of this process. We welcome the ongoing cooperation between the IMF, the World Bank Group, the ILO, the OECD and the WTO in particular in the following areas:

• Strengthening growth prospects remains a key priority. We welcome the ongoing efforts by many Euro Area countries to enhance their productivity, to raise employment and to improve fiscal positions. It is important to boost investment and revert the recent trend especially of decreasing foreign direct investment flows. The new European Fund for Strategic Investment (EFSI) will contribute to that goal by fostering investment and growth prospects in Europe. Nevertheless, further efforts, especially with respect to youth employment, social inclusion, structural reform and growth friendly consolidation, continue to be urgently needed across Euro area member states. Boosting innovation, improving education and health systems, strengthening productivity, narrowing social divides and strengthening product and labour markets are important policy goals to be achieved by implementing an ambitious reform agenda.

• Efforts to increase employment must be strengthened with a special emphasis on reducing youth unemployment, drawing on the ILO’s Decent Work Agenda and on its Global Jobs Pact approach adopted at the ILO International Labour Conference (ILC) of 2009, and the Call for Action on Youth Employment adopted at the 2012 ILC, as well as on OECD initiatives:Youth Action Plan, Gender Initiative and Inclusive Growth Initiative. Our goal remains to create good and safe work conditions, rising incomes, and real prospects for all who want to work while promoting gender equality.

• Trade remains an important driver of global growth, development and employment. We welcome the WTO Bali package of 2013 including the Trade Facilitation Agreement which is now being implemented. The focus in 2015 has to be on a Work Program to be concluded by July to advance the Doha Round which will prepare for a successful Tenth WTO Ministerial Conference in December. Moreover, we need to be open to new ideas to move WTO work forward. While multilateral trade opening remains the best way to create new market opportunities on a global scale, we also welcome ongoing efforts to conclude new bilateral and regional free trade agreements. This includes the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership which are set to make considerable progress in 2015. To complement the multilateral trading system such arrangements should be open, transparent, comprehensive, and minimize discrimination between members and non-members.

• Climate change and the protection of natural resources remain key challenges of our time. All international organizations are committed to combating climate change and promoting green growth and to this end are cooperating within their mandates. We recognize that 2015 is of overarching significance for climate policy with the Paris Conference of the Parties to the UNFCCC in December 2015, where a comprehensive, ambitious, and effective agreement needs to be finalized.

• The development of an overarching Post-2015 Agenda provides a unique opportunity to reinforce the commitment to end extreme poverty and hunger by 2030 and to build a sustainable development framework. The central challenge is to draw up an actionable agenda that integrates the three dimensions of sustainable development: economic, social and environmental. The central aim of the Post-2015 Agenda for sustainable development should be to improve the living and working conditions for all people worldwide and to protect the natural resource base and the earth's systems, which provide the basis of our living also for future generations. We will support the elaboration of this ambitious agenda in the United Nations. This will require strong political commitment and determined action at all levels and by all stakeholders. In this respect we look forward to the Third Conference on Financing for Development in Addis Ababa, Ethiopia, from 13 to 16 July 2015.

• The Ebola outbreak has clearly shown that the world has no proper international crisis management for global health crises, and needs to be faster and more coordinated, notwithstanding the considerable support provided to the affected countries by the global community. Therefore Germany has proposed a lessons-learned initiative which will be taken up in the G7. Addressing this challenge will require determined action by all relevant stakeholders and institutions.