Global eco in better place today: Yellen

BENGALURU: Lauding collective work, US Secretary of Treasury Janet L Yellen said on Thursday that the global economy is in a better place today than many had predicted just a few months ago. Taking part in the first Finance Ministers and Central Bank Government (FMCBG) and second Finance and Central Bank Deputies (FCBD) meeting held in Bengaluru as part of G20 events, Janet said, “Many were worried about a sharp economic slowdown across the world. The challenges we face are real, and the future is always uncertain. But the outlook has improved. In its most recent estimates, the IMF forecasts global growth of 3.2 per cent during 2023 – a notable upgrade from its October report.” 

She said the progress in the global macroeconomy was a result of collective work which further underscores the importance of redoubling efforts to go forward, adding, forums like the G20 were important for macroeconomic cooperation. 

Janet also held a meeting with Union Finance Minister Nirmala Sitharaman in which the two exchanged ideas on the finance track priorities and the energy transition partnerships. They also discussed at length the global debt vulnerabilities, crypto assets and the health sector, besides discussing lessons learnt from the pandemic and the need for enhanced preparedness to handle any such situations in future. 

Janet also used the platform to say, “Tomorrow is the one-year mark of Russia’s illegal and unjustified full-scale invasion of Ukraine. One year later, Putin’s war has been a strategic failure for the Kremlin. Ukraine still stands and NATO and our global coalition are united behind it.” 

She added that the US has committed over $13 billion in humanitarian and food security assistance. It has also rallied international financial institutions to implement an action plan to address food security. 

Started seeing lower headline inflation: Janet

The US has also worked with other countries to avoid export restrictions and enable food to move freely including through the Black Sea Grain Initiative. On the progress on the macro economy and mitigating spillovers from Russia’s war, she said, “Year on year, the headline on inflation has moderated as the supply chain pressures have eased and global imbalance has subsidised. At the same time, the labour market has remained strong. She added that in January, US’ unemployment had hit a low, not seen in over half a century.

Janet added, “During our meetings, there was a shared view among my counterparts that we must take decisive action on the challenges that we face in our own countries. That includes combating high inflation where it exists. It was also important to be attentive to the spillovers of macroeconomic tightening from major economies to the rest of the world. While there’s much more work to do, we are beginning to see lower headline inflation around the globe.”