The meeting took place in Niigata, Japan, amid concerns over a US debt default that fueled uncertainty surrounding the global economic outlook, already clouded by high inflation and a US banking crisis. .
“The global economy has shown resilience in the face of multiple shocks, including the COVID-19 pandemic and Russia’s war on Ukraine, and associated inflationary pressures,” the finance ministers said in a statement. at the end of the meeting.
“We must remain vigilant and be nimble and flexible in our macroeconomic policies amid growing uncertainty over the global economic outlook,” the ministers said in the statement.
The statement did not refer to the US debt ceiling crisis, to which the markets are exposed, as well as the increase in the cost of borrowing due to the monetary tightening policies of the US and European central banks.
US Treasury Secretary Janet Yellen said on Friday she would meet with top Wall Street bankers this week to discuss a possible US default, which would be the first since 1789.
World Bank President David Malpass said the prospect of a US debt default, for the first time in its history, would add to the problems facing the slowing global economy .
“It’s clear, the crisis facing the world’s largest economy will negatively affect everyone,” Malpass told Reuters on the sidelines of the meeting.
Regarding banking system issues, the statement said policymakers will address “gaps in banking system data, supervision and regulation.”
Finance ministers maintained their assessment released in April that the financial system is “resilient” thanks to financial regulatory reforms implemented after the 2008 global financial crisis.
The statement showed that while warning against a further “rise” in inflation, the central banks of the Group of Seven reaffirmed their commitment to price stability and ensuring that expectations inflation rates remain subdued.
The participants again condemned Russia’s war against Ukraine and pledged to strengthen the monitoring of cross-border transactions between Russia and other countries.
Discussions also touched on issues related to China, as Japan, which chaired the meeting this year, has led efforts to diversify supply chains and reduce heavy reliance on the second-largest economy. of the world.
Finance ministers set a year-end deadline for the launch of a new plan to diversify global supply chains, in the statement.
Some believe the new plan will include the Group of Seven providing assistance to low- and middle-income countries so they can play a greater role in supply chains for energy-related products, such as the refining of minerals and processing manufacturing supplies. .
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