global economy: Uncertainties cloud global economy, G20 nations must resolutely address challenges, says RBI Guv

RBI Governor Shaktikanta Das on Friday called upon G20 nations to resolutely address the challenges, like threats to financial stability and debt distress that confront the global economy. Addressing the inaugural session of the meeting of G20 finance ministers and central bank governors, Das said although the outlook for the global economy has improved in recent months and there is now greater optimism that the world may avoid a deep recession and only experience slow growth or softer recession,” yet uncertainties lie ahead of us.”

“Together we must resolutely address the challenges that confront us, including those that are of medium to long-term nature such as threat 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,” Das said.

This is the first meeting of the finance ministers and central bank governors of G20 — a grouping of developing and developed nations — under the India Presidency.

The RBI Governor said G20 is poised for a transformational journey and within the finance track, the effort will be to entrench unwavering faith in G20 as a multilateral forum to address 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 across 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‘,” Sitharaman said.