Saudi Central Bank Governor Applauds Global Monetary Policies Amid Economic Challenges
In a session titled “Global Economic Outlook and Ongoing Challenges” during the third meeting of Finance Ministers and Central Bank Governors of G20, Saudi Central Bank governor Ayman Al-Sayari commended the “well-calibrated” monetary policies implemented by global financial institutions. These policies aim to address inflation and enhance the resilience of the world economy amidst a myriad of challenges.
Al-Sayari provided a comprehensive perspective on the current global economic landscape and the policies needed to navigate through the challenges.
Emphasizing the importance of ensuring that the nominal growth rate surpasses the interest rate to mitigate risks to global growth in the short term, the top Saudi official advocated for sustainable economic expansion while effectively managing debt dynamics.
Al-Sayari also highlighted medium-term risks facing the global economy, such as ongoing geopolitical conflicts and trade fragmentation, which contribute to uncertainty and potential volatility in the international economic environment.
Addressing the transition to renewable energy, Al-Sayari acknowledged the global increase in renewable energy usage but expressed concerns over the rising consumption of fossil fuels and carbon emissions in 2023. He warned against hasty actions and emphasized the importance of a balanced approach to achieving sustainability goals without jeopardizing economic stability.
“We are all for reducing greenhouse gas emissions,” stated the SAMA chief.
Al-Sayari identified the growing income inequality as a critical issue and stressed the significance of implementing targeted social benefits and well-designed labor market policies to bridge this gap.