The global economic outlook has improved in recent months, but uncertainties still remain, RBI Governor Shaktikanta Das said on Friday as he called upon G20 nations to resolutely address the challenges, including debt distress and threats to financial stability, confronting world economies.
Addressing the inaugural session of the meeting of G20 finance ministers and central bank governors (FMCBG), Mr. Das said the outlook for the global economy has improved in recent months.
“There is now greater optimism that the world may avoid a deep recession and only experience slow growth or a softer recession. Yet uncertainties lie ahead of us,” Mr. Das said.
The International Monetary Fund (IMF) had in its January update of the World Economic Outlook said although the global economy is poised to slow this year, before rebounding next year, the outlook is less gloomy than in its October forecast, and could represent a turning point, with growth bottoming out and inflation declining.
The FMCBG meeting is the first major meeting of G20 — a grouping of 20 developed and developing nations — under India’s Presidency.
“Together we must resolutely address the challenges that confront us, including those that are of medium to long-term nature such as threats to financial stability, debt distress, climate finance, fractures in global trade and strains on global value chains. We must promote greater global economic cooperation and position the global economy on a trajectory of strong sustainable balanced and inclusive growth,” Mr. Das said.
The RBI Governor said G20 is poised for a transformational journey and within the finance track, the effort will be to entrench an unwavering faith in G20 as a multilateral forum to address global challenges.
In her inaugural address, Finance Minister Nirmala Sitharaman said the G20 discussions in 2023 under the India Presidency will focus on exploring holistic solutions to most pressing global challenges.
“The G20 can transform lives around the globe by leveraging the complementary strengths of members while respecting country needs and circumstances. It can be an incubator of new ideas… and a forum to listen to the voices of the ‘Global South’,” Ms. Sitharaman said.
Supporting the countries most in need and reflecting the concerns and aspirations of developing countries would be central to India’s efforts in its G20 Presidency, Ms. Sitharaman said.
In a tweet, the Finance Ministry said the first session of the G20 FMCBG meeting was jointly steered by Ms. Sitharaman and Mr. Das and focussed on issues relating to international financial architecture, sustainable finance and infrastructure.
The Minister also sought the views of the Ministers and Governors on how multilateral development banks can be strengthened to address shared global challenges of the 21st century, while maintaining a focus on sustainable development goals and poverty eradication.
“FM highlighted the rising #DebtVulnerbilities in many vulnerable countries and sought views of the #G20 members on #MultilateralCoordination stating that managing global debt vulnerabilities would be crucial for the world economy,” the tweet said.