4 August 2022
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.Introduction The G20 has discussed issues related to the global macroeconomy since its inception in 1999, when it began as a grouping of finance ministers in the wake of the Asian financial crisis. The G20 Leaders Summit began in 2008. Early discussions were centred around financial coordination across the member-states to address the impact of the 2008 global financial crisis. In 2009, countries coordinated efforts through the Financial Stability Board to increase the resilience of the global financial system, while preserving its openness and integrated network structure. As a result, the G20 was able to stabilise financial markets through a series of coordinated financial and monetary stimuli that averted a major economic depression.
Dirk Willem Te Velde
Dirk Willem te Velde is Director for International Economic Development at ODI London. He has written extensively on trade, investment, and economic transformation, including in the context of the G20. He is a member of the UK Strategic Trade Advisory Group and a Professor at >>
Prachi Agarwal is a Senior Research Officer at International Economic Development at ODI London. She has worked extensively on empirical analysis of trade policy, digital trade, regional trade agreements, and sustainable growth to inform better policies globally.
india china european union international affairs russia and eurasia indian economy strategic studies economy and growth issue briefs and special reports usa and canada the pacific, east and southeast asia