Union Finance Minister Nirmala Sitharaman called for fairness and accuracy in sovereign ratings for emerging markets and developing countries in order to improve their access to financing during her speech at the International Monetary Fund’s (IMF) 2024 Annual Meeting.
Sitharaman underlined the importance of sovereign ratings correctly reflecting these nations’ economic fundamentals to increase their capacity to draw in private investment during his remarks at the October 25 IMFC Plenary session in Washington. To improve rating techniques and better reflect a country’s ability to repay debts and economic resilience, she advocated for closer cooperation with credit rating firms.
Recognising the IMF expanding role during its 80-year existence and the need for adaptation, Sitharaman also pushed for governance reforms inside the IMF and other international organisations to better line with the shifting global economic landscape.
The global economy has shown remarkable resilience in 2024, the finance minister noted, with several big economies approaching their output potential and overall inflation going downward towards central bank objectives.
The global economy has shown remarkably resilient in 2024, according to the Union Finance Minister. While output in some big nations is approaching its capacity, headline inflation has typically decreased and is now closer to the central banks’ objectives. However, the Finance Ministry stated in a post on X (formerly Twitter) that there are a number of negative concerns, such as escalating geopolitical tensions and medium-term global economic prospects, which are concerning because of their ongoing weakness.
She did, however, issue a warning about a number of negative risks, such as rising geopolitical tensions and poor medium-term prospects for global development. In order to achieve a “soft landing” for the global economy and halt the cycle of low growth and excessive debt, Sitharaman stated her support for the IMF’s current Global Policy Agenda.
She emphasised the value of the IMF’s oversight and policy recommendations for nations with debt vulnerabilities and urged the Fund to continue providing unbiased policy recommendations. She also commended the IMF efforts to promote harmony in a divided globe and urged it to maintain its flexibility in areas like financing, capacity building, and monitoring in order to better assist its member countries.
