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Leaders of the world's 20 major economies also agreed on a set of targets for fiscal policies and measures to ensure strong, sustainable and balanced growth.
A final declaration was issued Sunday afternoon when the two-day summit concluded in Toronto, Canada's largest city.
World leaders recognized that the G20's highest priority is to "safeguard and strengthen the recovery and lay the foundation for strong, sustainable and balanced growth, and strengthen international financial systems against risks."
"Firm targets" have been established in a bid to advance economic recovery that is uneven and fragile.
The declaration says advanced economies are committed to fiscal plans that will at least cut deficits by half, by 2013 and stabilize or reduce government debt-to-GDP ratios by 2016.
The declaration calls on advanced countries with large deficits, to boost national savings, while surplus economies should undertake reforms to reduce their reliance on external demand.
Regarding financial sector reforms, the Toronto summit welcomed the full implementation of the European Stabilization Mechanism and Facility and the recent U.S. financial reform bill.
During the Toronto summit, world leaders have agreed that more work is needed to further strengthen the global financial system. They added that the amount of capital will be significantly higher and the quality of capital will be significantly improved when the new reforms are fully implemented.
Meanwhile, regulatory oversight of financial operations will be more transparent in an internationally consistent and non-discriminatory way.
The G20 summit declaration again recognized the importance of reforming international financial institutions like the World Bank and International Monetary Fund.
The Toronto summit reiterated the importance of anti- protectionism and free trade. The G20 leaders promised to keep their markets open to the opportunities that trade and investment offer.
The summit stressed again the support for bringing the WTO Doha Development Round to a balanced and ambitious conclusion as soon as possible, consistent with its mandate and based on the progress already made.
Besides discussions on recovery, financial reform and international trade, the G20 Toronto summit also addressed issues related to development, food security, and environmental protection. G20 leaders said the recent accident of BP oil spill shows the need of better environmental regulations.