Strong US economy is driving global resilience, Yellen to say
investmentnews.comThe strength of the US economy has been a key driver of global economic resilience, Treasury Secretary Janet Yellen plans to say Tuesday ahead of meetings with her counterparts from the world’s top economies.
“Over the past year, global growth has been resilient and stronger than predicted,” Yellen said, according to excerpts of remarks prepared for delivery Tuesday in Sao Paulo, Brazil. “America’s path to a soft landing has underpinned global growth.”
Yellen touted Biden administration policies that she argues have helped drive a surprisingly resilient US economy, which has featured historically low unemployment. By contrast, the euro zone has seen stagnant growth, Japan has contracted and China has had to roll out support measures to counter weak domestic demand.
Finance ministers and central bankers from the Group of 20 emerging and developed nations are gathering this week in Brazil’s business capital to assess the state of the global economy.
The Treasury chief noted that expectations of a broad-based slowdown in the world economy for 2023 — put out by the International Monetary Fund and other forecasters — ended up not materializing.
The IMF raised its forecast for global growth this year on better-than-expected expansion in the US, along with fiscal stimulus in China, even as it warned of risks from wars and inflation. World GDP will rise 3.1% this year, up from the 2.9% seen in October, the fund said last month.
At home, Yellen and Joe Biden have sought to showcase strong economic numbers as the president faces a tough re-election campaign, with surveys suggesting continuing public dissatisfaction after a surge in the cost of living.
Yellen acknowledged there are risks facing the global outlook, and said she
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