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Updated February 27th, 2024 at 09:09 IST

Yellen praises US as key driver of global economic resilience

Yellen stressed upon ongoing vigilance regarding global economic risks but maintained confidence in the overall resilience of the global economy.

Reported by: Business Desk
US Treasury Secretary Janet Yellen
US Treasury Secretary Janet Yellen | Image:ANI
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Janet Yellen on global economy: Treasury Secretary Janet Yellen commended the resilience of the global economy, citing strong US economic growth as a primary catalyst for the better-than-expected global expansion. 

Speaking ahead of the G20 finance officials meeting in Sao Paulo, Brazil, Yellen highlighted the International Monetary Fund's projections of a widespread slowdown in the global economy for 2023, which did not materialise.

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Contrary to forecasts, global growth reached 3.1 per cent, surpassing expectations, while inflation rates declined across approximately 80 per cent of economies, with expectations for further decreases this year. 

Yellen stressed upon ongoing vigilance regarding global economic risks but maintained confidence in the overall resilience of the global economy.

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Yellen attributed much of this strength to robust economic performance, driven by Biden administration initiatives supporting pandemic-affected businesses and investments in domestic manufacturing, clean energy, and infrastructure.

She noted crucial decreases in US inflation from its peak and highlighted the historically strong US labour market, with prime-age labour force participation surpassing pre-pandemic levels and unemployment rates near historic lows.

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Expressing relief that a projected US recession in 2023 did not materialise, Yellen stressed that America's growth consistently exceeded projections, thus preventing potential disruptions to global growth trajectories. 

The IMF recently revised its global growth outlook for 2024 to 3.1 per cent, up slightly from its October forecast, while maintaining the 2025 forecast at 3.2 per cent.

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While acknowledging contributions to global growth from economies like Brazil, the current G20 president, Yellen also acknowledged persistent challenges faced by certain countries, though she did not specify which ones. 

The IMF plans to incorporate new data on the Japanese and British economies, both of which entered recession, into its upcoming April global forecast, according to IMF spokesperson Julie Kozack.

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(With Reuters Inputs)

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Published February 27th, 2024 at 09:09 IST

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