Treasury warns of global stagflation

What is a stagflation?

The World Bank (WB) defines stagflation as a “prolonged period of low growth and high inflation”.

Rogelio Ramírez de la O expressed that in the context of the pandemic, they also presented opportunities for accelerate reforms from the side of the offerwhich allow to strengthen the growth potential of countries and drive inclusive growth.

He stressed that the government of Mexico drives the wellness and the social development through programs and projects that guarantee national integration, and has focused on promoting quality jobs and increase the income of the workers.

Meanwhile, the Undersecretary Gabriel Yorio participated in the 8th Ministerial Meeting of the Coalition of Finance Ministers for Climate Actionmade up of 78 countries, whose objective is to analyze the challenges for the climate transition in the current economic and geopolitical context.

In his speech, he stressed that the Ministries of Finance have an important role in reducing the funding gap to deal with climate changemeet the social gaps and, in some cases, the challenges of security Y peace.

He also urged to share the sense of urgency to fulfill the commitments, add more actors and turn our attention to additional mechanisms to mobilize financing towards sustainable investments, since to reach net zero emissions in 2050 and limit global warming, it takes 10 times the amount of assets held by the Multilateral Development Banks.