G20 nations must address challenges confronting global economy: RBI Governor

RBI Governor Shaktikanta Das on Friday (February 24) 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 had improved in recent months and there was now greater optimism that the world might avoid a deep recession and only experience slow growth or softer recession, “yet uncertainties lie ahead of us”.

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“Together we must resolutely address the challenges that confront us, including those that are of medium to long-term nature such as the threat to financial stability, debt distress, climate finance, fractures in global trade, and the strain 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.

‘G20 poised for a transformational journey’

The RBI Governor said G20 was poised for a transformational journey and within the finance track, the effort would 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 the most pressing global challenges.

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“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.

(With agency inputs)