Calling for coordination aimed at “strong and sustainable global economic growth”, Reserve Bank of India governor Shaktikanta Das on Friday said that G20 countries have to address threats to financial stability, debt distress, climate finance, fractures in global trade and strains on global value chains.
“Within the Finance Track, our effort will be to entrench an unwavering faith in the G20 as a multilateral forum that can energise multilateralism to address the various global issues and challenges that confront us today,” Das said addressing the first G20 finance ministers and central bank governors (FMCBG) meeting under India’s G20 presidency here.
The outlook for the global economy has improved in recent months and there is greater optimism that the world may avoid a deep recession and only experience slow growth or a softer recession, he said.
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“Yet, uncertainties lie ahead of us. Together we must resolutely address the challenges that confront us, including those of a medium to long-term nature,” Das said.
The IMF, meanwhile, has said the rising interest rates and the war in Ukraine continue to weigh on economic activity in most countries, including India. Global inflation is expected to fall from 8.8% in 2022 to 6.6% in 2023 and 4.3% in 2024, still above pre-pandemic (2017–19) levels of about 3.5%.
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“We must promote greater global economic cooperation, and position the global economy on a trajectory of strong, sustainable, balanced, and inclusive growth,” Das added.
The finance ministers of the G20 countries, a grouping of large developed and developing nations, have gathered in Bengaluru on Friday for a two-day meeting of G20 FMCBG.