LONDON: A panel of finance ministers and economic experts at the World Economic Forum (WEF) in Davos urged governments and business leaders to take control of their own fate, and need to shape policies that fuel growth rather than being constrained by pessimistic economic forecasts.
Despite projections from the World Bank and the International Monetary Fund foreseeing a decade of low growth in the 2020s, the panel, including World Bank President Ajay Banga, said that these projections are not destiny.
“(World Bank President) Ajay Banga said at this event that these were ‘projections not destiny,’ and therefore we should work on seeing how we can form our own destiny and shape the way we do things by adopting policies to fuel growth,” Mohammed Al-Jadaan, Saudi Arabian Finance Minister told attendees.
Ngozi Okonjo-Iweala, Director-General of the World Trade Organization, shared optimism, highlighting the resilience of trade despite uncertainties. She pointed out the positive impact of trade on energy diversification in Europe and sourcing alternatives for African countries dependent on Black Sea grain.
Amid reports of fragmentation and geopolitical tensions, Okonjo-Iweala highlighted new growth in services and digital trade. Data showing an 8 percent annual increase in digitally delivered services prompted her to encourage support for this sector.
European Central Bank President Christine Lagarde emphasized the importance of consumption as a driver of growth, noting a shift in global trade patterns and a recent upturn in global trade numbers in October.
German Finance Minister Christian Linder acknowledged the global economy’s remarkable resilience in the face of historic shocks from the COVID-19 pandemic. However, Singapore’s President Tharman Shanmugaratnam cautioned against slow-moving threats such as shifts in the global ecological balance, aging societies, and polarization, emphasizing their impact on resilience and human security.
