Daily Management Review

US Treasury Secretary Yellen Hails The US As The Economic Engine And Says The Global Economy Is Still Robust


Ahead of this week's G20 finance officials meeting in Sao Paulo, Brazil, U.S. Treasury Secretary Janet Yellen will say at a news conference on Tuesday that robust U.S. economic growth has been a "key driver" of better than expected global growth.
According to Treasury-released portions of Yellen's speech, the global economy did not experience the widespread slowdown that other analysts and the International Monetary Fund had predicted would occur in 2023.
Rather, 3.1% growth beat forecasts, inflation decreased, and prices are predicted to decline in almost 80% of economies this year, according to her.
"Going forward, we remain cognizant of the risks facing the global outlook and continue to carefully monitor the economic challenges in certain countries, but the global economy remains resilient," she said.
Yellen stated that the actions of the Biden administration, which supported companies severely impacted by the COVID-19 pandemic and made investments in infrastructure, clean energy, and domestic manufacturing, had propelled U.S. economic strength and supported global growth.
According to her, the labour market in the United States was historically robust, with the unemployment rate being close to historic lows and the prime-age labour force being above pre-pandemic levels. U.S. inflation had also greatly decreased from its high.
"Had a U.S. recession come in 2023, like many predicted, global growth would have been thrown off track. While there are risks to our outlook, America’s growth has consistently exceeded projections," Yellen said.
The IMF maintained its 3.2% prediction for 2025 but revised its expectation for global growth to 3.1% in 2024, up two tenths of a percentage point from October.
Pierre-Olivier Gourinchas, the chief economist at the IMF, stated that although a "soft landing" was predicted in the organization's most recent World Economic Outlook, global trade and overall growth were still below historical norms.
Even if some economies were still facing difficulties, Yellen said that growth in several economies—including Brazil, which is currently leading the Group of 20—had also contributed to global growth. She did not name the nations who were having issues.
A representative for the International Monetary Fund, Julie Kozack, informed reporters last week that the global lender will include fresh data on the economies of Britain and Japan, which both entered recessions, when preparing a revised global estimate that would be made public in April.