Siluanov Warns World Economy is ‘Overheating’

Long-term maintenance of anti-crisis policies in a number of nations might lead to global economic overheating, according to Russian Finance Minister Anton Siluanov, speaking at a G20 financial track meeting, RIA reports.

He pointed out that certain nations’ economic policies for overcoming crises have a direct impact on others, as a consequence of which some countries have already begun to normalize monetary policy in the face of rising inflation, while others have kept economic stimulus measures in place.

The minister stated that he considers this to be a threat to the global economy. Siluanov noted, as reported by the Ministry of Finance’s press office, that continuing to maintain anti-crisis measures may lead to the economy overheating and a consequent accumulation of imbalances.

The Minister emphasized that it is now critical to guarantee that monetary and fiscal policy are normalized as quickly as feasible in conformity with the speed of economic recovery and the rise in inflationary pressures.

Following that, policy normalization or even tightening will necessitate responding to developments in the foreign exchange, financial, and commodities markets. All of these reasons will increase market volatility and are likely to have a detrimental impact on global economic development, according to Siluanov.