Yellen: US economy strength is key driver of good global growth

U.S. Treasury Secretary Janet Yellen plans to tell the G20 summit that the strength of the U.S. economy is a key driver of global economic resilience. Ahead of meetings with counterparts from the world’s leading economies on Tuesday, Treasury Secretary Janet Yellen plans to tell reporters that the strength of the U.S. economy is a key driver of global economic resilience. The transcript of a press conference Yellen is due to hold in Sao Paulo for a summit of G20 finance ministers and central bank governors was distributed to reporters. “Global growth last year was resilient and stronger than anticipated. America’s path to a soft landing supported global growth. Looking ahead, we are conscious of the risks to the global outlook and continue to monitor carefully the economic challenges in some countries, but the global economy remains resilient,” Yellen said. She praised the Biden administration’s policies, which she said have helped make the U.S. economy, which has historically low unemployment, surprisingly resilient. By contrast, growth in the eurozone has stagnated, Japan has shrunk and China has had to impose support measures to meet weak domestic demand. The head of the U.S. Treasury Department said expectations by the International Monetary Fund and other forecasters for a broad-based slowdown in the world economy in 2023 have not materialized. The IMF has raised its global growth forecast for this year due to better-than-expected growth in the U.S. and fiscal stimulus in China, although it has warned of risks from wars and inflation. The fund said last month that world GDP will rise by 3.1% this year, up from 2.9% in October.