On the eve of the recent G20 finance ministers meeting, U.S. Treasury Secretary Janet Yellen showed clear optimism about the global economy this year at a press conference in Sao Paulo, Brazil. According to her, although the International Monetary Fund (IMF) and other agencies had previously predicted a total slowdown in the global economy in 2023, actual data did not show that.

Yellen, citing the latest economic indicators and analyses, predicts that the global economic growth rate will reach 3.1% this year, a figure that exceeds previous expectations. At the same time, she also predicts that about 80% of economies will experience a decline in inflation this year, indicating that global commodity price levels will continue to stabilize.

During the press conference, Yellen highlighted the resilience of the global economy and noted that despite some uncertainty and risks, the overall outlook remains optimistic. She also highlighted the U.S. governments efforts to drive economic growth, notably referring to the Biden governments policies to support, as well as significant investments in domestic manufacturing, clean energy and infrastructure.

The current economic situation in the United States has also given Yellen reasons to remain optimistic, referring to the fact that U.S. inflation has dropped significantly from its peak, while the labor market remains strong and unemployment is close to its lowest level in history.

In addition, the IMF also recently upgraded its forecast for global economic growth, adjusting its forecast for global economic growth for 2024 to 3.1 percent, 0.2 percentage points higher than previously predicted in October. IMF chief economist Pierre-Olivier Gourinchas noted that while global growth and global trade remain below the historic average, a “soft landing” is becoming possible.

Although the Japanese and British economies are currently showing signs of recession, IMF spokeswoman Julie Kozack said it would consider the latest information on the economies of the two countries when preparing for the new global economic forecast to be released in April.

Yellen also noted that many economies, including the G20 rotating presidency of Brazil, have contributed to global economic growth.

Yellen’s speech not only added a glimpse to the global economic outlook, but also provided some confidence and guidance to the international community in addressing various economic challenges, however, countries around the world still need to remain vigilant and continue to implement effective economic policies to ensure sustainable and stable economic growth.