G7, economy resilient to shocks
“The global economy has showed resilience against multiple shocks, including the pandemic, Russia’s war on Ukraine, and inflation. However, we must remain vigilant, e we need to be nimble and flexible in our macroeconomic policies in a context of heightened uncertainty about the global economic outlook“: the ministers of Economy and Finance of the G7 countries in the final communiqué at the end of the meeting in Japan.
Support for Ukraine
“We reiterate our standstill support for Ukraine for as long as necessary and we stand united in our condemnation of Russia’s illegal, unjustifiable and unprovoked war of aggression against Ukraine”.
This is the first point of the final communiqué of the financial G7. “We are firmly committed – it is written – to continuing to address Ukraine’s urgent short-term financing, as well as supporting neighboring countries and other seriously affected countries”. The commitment to the reconstruction and repair of critical Ukrainian infrastructure was also highlighted.
Ofended on the climate
“We are determined to tackle climate change as a matter of urgency, through large-scale action in this critical decade, to keep global temperature rise within the 1.5-degree limit. This is what the economic ministers of the G7 which was held in Japan wrote in the final communiqué.
The text underlines the “need to strengthen international cooperation and coordination on climate change mitigation policies within the G7” and undersigns the commitment to “increase our joint efforts to mobilize finance for the climate, with the objective of addressing the two objectives of climate mitigation and adaptation”.
Banking system is resilient
“We will continue to work closely with supervisory and regulatory authorities to monitor the developments in the financial sector and we stand ready to take appropriate action to maintain the stability and resilience of the global financial system“: this was stated by the ministers of Economy and Finance of the G7 countries in the final communiqué at the end of the meeting in Japan.
However, the ministers reiterate that “our financial system is resilient, underpinned by the financial regulatory reforms implemented after the 2008 financial crisis, including significant increases in banks’ capital and liquidity levels, an international framework to effectively resolve failing institutions , the strengthening of cross-border regulatory and supervisory cooperation”.
G7 at work to diversify distribution chains
The G7 plans to launch a partnership program for diversify supply chains as early as this year. Ministers did not directly mention efforts to reduce dependence on trade with China or Russia as motivation for the new framework, which focuses on clean energy technology.
But after meeting with his Japanese counterpart, the US Treasury Secretary Janet Yellen he underlined the recent shocks to the global economy while speaking to reporters. “The fallout from Russia’s war against Ukraine – she said – and the disruptions caused by the pandemic have clarified the importance of diversified and resilient supply chains”.
Finance ministers and central bank chiefs of the Group of Seven underlined “the urgent need to address existing vulnerabilities within highly concentrated supply chains”. In the joint statement they said they hoped to launch the partnership in cooperation with the World Bank “by the end of this year at the latest”.
The scheme, dubbed RISE – Resilient and Inclusive Supply-chain Enhancement – builds on guidelines published in April and will offer interested developing countries “finance, knowledge and partnerships”