Bengaluru, Feb 23 (Bureau) US Treasury Secretary Janet Yellen on Thursday said despite the existence of significant headwinds, the global economy is in a better place today than many predicted just a few months ago. “While there are significant headwinds, it’s fair to say that the global economy is in a better place today than many predicted just a few months ago,” she said in a statement at a press conference on the sidelines of the G20 finance meeting here. “In the fall, 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 since we gathered in the fall. In its most recent estimates, the IMF forecasts global growth of 3.2 percent during 2023 – a notable upgrade from its October report,” she said. In the United States, Janet said its economy remains resilient. Year-on-year headline inflation has moderated over the past few months, as supply chain pressures have eased and global imbalances have subsided, she said.
“At the same time, our labor market remains strong. In January, US unemployment hit a low not seen in over a half-century. The progress on our global macroeconomy is a result of our collective work, and it underscores the importance of our redoubling efforts going forward,” she said. Janet said there was a shared view among her counterparts to take decisive action on the challenges including high inflation that the countries face. “Forums like the G20 are important venues for macroeconomic cooperation. During our meetings last fall, 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 combatting high inflation where it exists,” she said. It was also important to us to be attentive to the spillovers of macroeconomic tightening from major economies to the rest of the world, Janet said. “While there’s much more work to do, we are beginning to see lower headline inflation around the globe,” she said.
In emerging markets, financial conditions remain relatively tight, but have begun to show signs of easing, Janet said. “At the same time, we know that a number of vulnerable countries continue to face acute distress. We are not out of the woods yet. So, I am looking forward to the opportunity this week to continue our close communication with other major economies,” she said. Janet said, “Our progress has also been made possible through our actions to mitigate spillovers from Russia’s war on Ukraine. She said “Vladimir Putin’s immoral war has exacerbated the stress on our food systems. Since last year, the US has committed more than $13 billion in humanitarian and food security assistance. We have also rallied international financial institutions to implement a robust Action Plan to Address Food Insecurity.”
“Further, we have worked with countries to avoid export restrictions and enable food to flow more freely, including through the Black Sea Grain Initiative,” she said. “This life-saving initiative has improved supply and lowered prices. It must be extended past March. More work will be done this year at the G20 on these food security challenges. I believe this work cannot come soon enough,” Janet added. Another focus has been global energy markets and in December, the US and its coalition implemented a cap on the price of Russian crude oil. And earlier this month, the coalition placed caps on the prices of Russian refined products like diesel and fuel oil, she said.