India's Finance Minister Nirmala Sitaraman (center) addressing a press conference along with the Governor of Reserve Bank of India, Shaktikanta Das (right) and Secretary, Department of Economic Affairs, Ministry of Finance Ajay Seth after the G20 Finance meetings under India’s G20 Presidency in Bengaluru on Feb 25, 2023. (PHOTO / AFP)

NEW DELHI – The G20 finance ministers and central bank governors on Saturday reiterated their commitment to enhancing international policy cooperation and steering the global economy towards securing strong, sustainable, balanced and inclusive growth.

They also stressed on the need for well-calibrated monetary, fiscal, financial, and structural policies to promote growth and maintain macroeconomic as well as financial stability globally.

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Besides, they recognized the urgency to address debt vulnerabilities in low and middle-income countries, and declared that strengthening multilateral coordination by official bilateral and private creditors was needed.

We will prioritize temporary and targeted fiscal support to vulnerable groups while maintaining medium-term fiscal sustainability.

G20 Chair's Summary and Outcome Document

At the conclusion of the two-day meeting in India's southern city of Bengaluru, the "G20 Chair's Summary and Outcome Document" stated that the global economic outlook had modestly improved since their last meeting in October 2022.

"However, global growth remains slow, and downside risks to the outlook persist, including elevated inflation, a resurgence of the pandemic and tighter financing conditions that could worsen debt vulnerabilities in many Emerging Market and Developing Economies (EMDEs)," reads the document.

The G20 will continue to enhance macro policy cooperation and support the progress towards the 2030 Agenda for Sustainable Development. It will use macroprudential policies, where required, to safeguard against downside risks, the statement adds.

“We will prioritize temporary and targeted fiscal support to vulnerable groups while maintaining medium-term fiscal sustainability.”

Central banks remain strongly committed to achieving price stability and will ensure inflation expectations remain well-anchored, the document said.

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The ministers and governors look forward to the mapping exercises on food insecurity currently being undertaken by the Food and Agriculture Organization and the World Bank, it added.

The officials said that while maintaining their focus on poverty reduction and all other Sustainable Development Goals, they will work to strengthen the key role of Multilateral Development Banks in development financing.