The global macroeconomy has undergone unprecedented change in recent years, particularly because of the COVID-19 pandemic. While the G20 had an effective coordinating role in steering the global economy through the 2008 global financial crisis, its role in engineering an inclusive and sustainable recovery from the pandemic has been more mixed. Incomes in the advanced G20 economies are on track to return to pre-pandemic levels by end-2022 but have recovered more slowly in the low- and middle-income countries. At the same time, debt has increased, and inflationary pressures are building due to supply chain disruptions, posing challenges to maintaining fiscal and monetary stability. The Russia-Ukraine conflict has further weakened the global economy, and the negative effects of climate change have also left countries vulnerable. Under the current G20 presidency (Indonesia), efforts are focused on encouraging countries to work together to achieve a stronger and more sustainable global recovery. A range of monetary, fiscal and trade policy issues are developing, and these, in addition to emerging issues, will inform India’s G20 presidency in 2023.
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