Need for coordinated action among nations to aid post-Covid recovery: FM

Finance Minister Nirmala Sitharaman has said there is an urgent need for coordinated action among nations to enable a swift economic recovery post the Covid-19 pandemic, and also to build resilience to future shocks.

Speaking at the G20 Emerging Market Economies (EMEs) meeting in Washington DC on Tuesday night, Sitharaman shared her insights on the economic outlook, risks, and near-term policy challenges such as food and energy security and the tightening of global financial conditions.

“Discussing future of work and debt vulnerabilities, the finance minister said there is an urgent need for coordinated action across countries to not only enable swift post-pandemic recovery but also to build resilience to future shocks,” the finance ministry said on Twitter.

Apart from Sitharaman, Reserve Bank of India Governor Shaktikanta Das attended the G20 EMEs meeting organised by the International Monetary Fund (IMF).

On Tuesday, the IMF, in its latest World Economic Outlook report, slashed its forecast for India’s FY23 gross domestic product growth to 8.2 per cent from 9 per cent, saying that higher commodity prices would weigh on private consumption and investment.

Noting that global economic prospects had worsened significantly due to commodity price volatility and supply chain disruptions, the IMF cut its global growth outlook for calendar year 2022 to 3.6 per cent from 4.4 per cent, and said that both Russia and Ukraine could experience large GDP contractions.

Sitharaman also held talks with Financial Stability Board Chairman Klass Knot and Vice-Chairman of the Climate Finance Leadership Initiative (CFLI) Mary Schapiro and exchanged views on risks in cryptocurrency ecosystem and development of GIFT City — India’s first operational smart city.

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