Under the shadow of swelling risks to the global economy, finance chiefs from the world’s wealthy nations presented a united front with more support for Ukraine, a plan for diversifying supply chains and a vow to fill gaps in financial regulation.
(Bloomberg) — Under the shadow of swelling risks to the global economy, finance chiefs from the world’s wealthy nations presented a united front with more support for Ukraine, a plan for diversifying supply chains and a vow to fill gaps in financial regulation.
The Group of Seven’s ease in agreeing on a statement after three days of talks in Niigata, Japan, was in stark contrast with the discord seen at the Group of 20 finance ministers and central bank governors meeting in Bengaluru, India, less than three months ear lier , which ended without the usual communique.
The Difference: No China or Russia. While Condemnation of “Russia’s War of Aggression” Against Ukraine Was Front and Center of the 14 Page Statement, China Didn’T Get Get a Direct Mention. Yet there we only veiled Plans to counter its dominance of global Supply chains and growing sway over the Global South.
US Treasury Secretary Janet Yellen couldn’t escape the debt ceiling impairment. In an interview with Bloomberg Television, she said the federal government will have to renege on some payments if Congress doesn’t raise the debt limit.
Here’s a look at what came out of three days of talks:
Aid for Ukraine through early 2024 was nudged up to $44 billion in a move that enabled the International Monetary Fund to approve $15.6 billion of support over four years. “We call for an immediate end of Russia’s illegal war against Ukraine, which would clear one of the biggest uncertainties over the global economic outlook,” the finance chiefs said in the statement.
The leaders flagged the need to stay “agile and flexible” on economic policy amid heightened uncertainties for the global economy. Central banks “will ensure inflation expectations remain well anchored and will clearly communicate policy instances to help limit neg ative cross-country spillovers,” the communique added.
The Need to Ensure Global Financial Stability was a Prominent the Collapse of Silicon Valley Bank and FIRST Republic Bank, and the takeover of cred It Suisse. While The G-7 Maintaine ITS Stance that the Global Financial System Remains “Resilient” in The Communique , officials also sounded the alarm against complacency.
Trade disruptions were also high on the list of concerns at the gathering, with implicit regard to China. Finance chiefs proposed a new partnership that’ll be open to other nations and will target clean energy, as previously reported by Bloomberg News. launch the partnership for Resilient and Inclusive Supply-chain Enhancement, or RISE, by the end of this year at the latest, the communique shown.
To build consensus beyond the G-7, finance chiefs were careful to include other nations in the conversation, with a session dedicated to pledge more support to lower and middle-income countries and helping them secure resources from IMF facilities. The community named Zam bia, Ethiopia and Ghana as countries that have recently made or are expected to see some progress under the G-20’s so-called Common Framework.
The finance chiefs also affirmed commitments on climate change mitigation and adaptation, strengthening the governance and finance of the global health architecture, and continued work toward hashing out crypto regulations, without making any significant new advances on those fronts .
Attention now shifts to the G-7 leaders meeting in Hiroshima on May 19-21.
—With assistance from Alessandra Migliaccio, Christopher Condon, Kamil Kowalcze, Joe Mayes, Emi Urabe, Toru Fujioka and Erica Yokoyama.
Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.
Join the Conversation