Nirmala Sitharaman seeks G20 coordination to tackle challenges to global growth

With downside risks to global growth still persisting, Finance Minister Nirmala Sitharaman on Monday urged her G20 counterparts and central bank governors to coordinate to work on an international approach to navigate this challenging period.

“We will focus on issues related to the global economy and global health. Since we met last in April, global economic growth is below its long-run average and remains uneven,” Sitharaman said in her opening remarks at the inaugural session of Finance Ministers and Central Bank Governors (FMCBGs) meeting here.

“Further, the uncertainties around the outlook remain high and downside risks to growth still persist including those related to geo-economic fragmentation.”

International Monetary Fund has projected global growth at 2.8% in 2023, down from 3.4% in 2022. It ha also said financial fragilities uncovered by tight monetary policy require careful management—particularly as restoring price stability remains a priority.

Sitharaman said the G20 meeting would reflect on key deliverables and provide guidance on the way forward.

In this context, the G20 Framework Working Group explored the issue of tackling macroeconomic challenges related to food and energy insecurity and those related to climate change and transition pathways, she said.

The policy lessons that emerged from these issues clearly underpin the need for enhanced international economic cooperation, the minister added.

Three significant deliverables are prepared including the framework on economic risks and vulnerabilities, the report on best practices in financial health institutional arrangements and the report on mapping pandemic response financing options and gaps. The G20 participant ministers and governors would share their views on these issues.

https://www.financialexpress.com/economy/nirmala-sitharaman-seeks-g20-coordination-to-tackle-challenges-to-global-growth/3174155/