The RBI Governor said the G20 is about to transform itself and that in the financial arena the effort will be to anchor an unwavering faith in the G20 as a multilateral forum to address global challenges. | Photo credit: ATUL YADAV

The global economic outlook has improved in recent months, but uncertainties remain, RBI Governor Shaktikanta Das said on Friday, calling on G20 countries to resolutely address challenges including over-indebtedness and threats to financial stability. , facing global economies.

Addressing the inaugural session of the G20 Finance Ministers and Central Bank Governors Meeting (FMCBG), Das said the outlook for the global economy has improved in recent months.

“There is now greater optimism that the world can avoid a deep recession and experience only slow growth or a milder recession. Yet uncertainties lie ahead,” Das said.

The International Monetary Fund (IMF) said in its January World Economic Outlook update that although the global economy is poised to slow this year, before rebounding next year, the outlook is less gloomy than in its October forecast and could represent a turning point, with a dip in growth and a drop in inflation.

The FMCBG meeting is the first major meeting of the G20 – a grouping of 20 developed and developing countries – under India’s presidency.

“Together, we must resolutely address the challenges we face, including those that are medium to long-term in nature such as threats to financial stability, over-indebtedness, climate finance, global trade fractures and tensions. on global value chains. We need to promote greater global economic cooperation and position the global economy on a path of strong, sustainable, balanced and inclusive growth,” said Das.

The RBI Governor said the G20 is on the verge of a transformation, and in the area of ​​finance, the effort will be to anchor an unwavering faith in the G20 as a multilateral forum to address global challenges.

In her inaugural address, Finance Minister Nirmala Sitharaman said the G20 discussions in 2023 under India’s presidency will focus on exploring holistic solutions to the most pressing global challenges.

“The G20 can transform lives around the world by leveraging the complementary strengths of members while respecting countries’ needs and circumstances. It can be an incubator for new ideas…and a forum to listen to the voices of ‘ Global South’,” says Ms. Sitharaman.

Supporting countries most in need and reflecting the concerns and aspirations of developing countries would be central to India’s efforts in its G20 Presidency, Ms. Sitharaman said.

In a tweet, the Ministry of Finance said that the first session of the G20 FMCBG meeting was co-led by Ms. Sitharaman and Mr. Das and focused on issues relating to international financial architecture, sustainable finance and infrastructure. .

The Minister also sought the advice of Ministers and Governors on how the Multilateral Development Banks can be strengthened to meet the common global challenges of the 21st century, while maintaining a focus on the Sustainable Development Goals and the poverty eradication.

“FM highlighted the increase in #DebtVulnerabilities in many vulnerable countries and sought the views of #G20 members on #MultilateralCoordination stating that managing global debt vulnerabilities would be crucial for the global economy,” says the tweet.