Saudi Finance Minister: Global Economy Resilient but Facing Mounting Risks
Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan said the global economy has shown resilience in the face of shocks, but has simultaneously become more exposed to growing risks.
Speaking at the second meeting of G20 finance ministers and central bank governors in Asheville, North Carolina, United States, Al-Jadaan said recent experiences have highlighted the need to bolster economic resilience by diversifying production alternatives, ensuring adequate inventories and maintaining infrastructure with spare capacity, which he described as the first line of economic defense against shocks.
Strengthening Long-Term Growth
The minister stressed the importance of strengthening economies’ ability to deliver strong, sustainable long-term growth, noting that the constraints limiting growth vary across economies and evolve as countries move through different stages of development.
Enhancing growth potential, he said, requires identifying the most binding constraints at each stage and tailoring policies and reforms to the nature and evolution of these challenges.
Global Imbalances, Structural Factors
In the “Global Imbalances” session, Al-Jadaan said external surpluses and deficits may reflect differences in economic conditions and structures among countries and do not necessarily constitute an imbalance in themselves. He added that effectively addressing global imbalances requires looking beyond trade flows to consider domestic financial and economic conditions and the structural factors driving them.
Sovereign Debt, Prevention
During the “Sovereign Debt” session, the minister said building a more robust international framework to address debt challenges is not limited to managing debt crises in fragile states more effectively; it also requires curbing the accumulation of debt that does not generate sustainable economic and developmental returns. He emphasized that strengthening countries’ capacities to assess financing needs and manage debt sustainability is a key pillar in preventing liquidity pressures from escalating into deeper debt crises.
Bilateral Meetings
On the sidelines of the meetings, Al-Jadaan held a series of bilateral talks with counterparts from participating countries and senior officials of international financial institutions. Discussions covered global economic developments, financial issues of mutual interest, and opportunities to enhance cooperation and exchange expertise in economic and financial fields.
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