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| If the US economy falls into recession in 2023, global growth will be derailed. (Source: Medium) |
The above information was given by Secretary Janet Yellen before the Conference of Finance Ministers and Central Bank Governors of the Group of 20 leading developed and emerging economies (G20) in Sao Paolo, Brazil.
According to Ms. Yellen, Washington remains well aware of the risks to the global outlook and continues to closely monitor economic challenges in certain countries, but the global economy remains resilient.
She affirmed: "It is the economic strength of the US that has supported global growth, thanks to the policies of the Joe Biden administration to support businesses heavily affected by the Covid-19 pandemic, invest in domestic manufacturing, clean energy and infrastructure."
Assuming growth continues to exceed forecasts, Secretary Yellen asserted that if the world's largest economy falls into recession in 2023, global growth will be derailed.
Previously, on February 12, the International Monetary Fund (IMF) and the World Bank (WB) warned that the conflict in Gaza and related attacks on shipping through the Red Sea pose threats to the global economy.
According to IMF Managing Director Kristalina Georgieva, the Israel-Hamas conflict that broke out in October 2023 has negatively affected the economy of the Middle East and North Africa region.
“The knock-on effects of the conflict could affect the whole world the longer this situation lasts,” she said.
Meanwhile, on February 5, the Organization for Economic Cooperation and Development (OECD) forecast that world economic growth in 2024 will reach 2.9%.
However, the organization said that conflicts in the Middle East as well as disrupted transport activities in the Red Sea region risk escalating consumer prices.
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