Finance chiefs of the Group of Seven (G7) countries concluded their three-day meeting in Niigata, Japan, expressing confidence in global financial stability despite recent digital bank runs. They also discussed the need to establish more robust and resilient supply networks in response to China’s growing influence. The finance ministers and central bank governors reaffirmed their support for Ukraine and vowed to block Russian attempts to evade Western sanctions related to the conflict with its neighbor.
The discussions were summarized in a joint statement, which will be made public. Japan, as the host, was represented by Finance Minister Shunichi Suzuki and Bank of Japan Governor Kazuo Ueda, who will hold a press conference to provide further details.Bank and debt issues took center stage during the meeting, with concerns over the stability of the financial system following a series of US bank failures and the looming possibility of a US default if the debt ceiling is not raised. China, although not a G7 member, participated in the discussions, particularly on addressing debt vulnerabilities in developing countries and improving supply chains for sustainable development. The Chinese lending practices, which often place emerging debtor countries at risk, were a topic of concern.Additionally, a joint meeting with G7 health ministers was scheduled to develop a financial framework to enhance preparedness and response to pandemics.
The G7, consisting of the United States, Britain, Canada, France, Germany, Italy, Japan, and the European Union, recognized the need for nimble and flexible macroeconomic policies in their negotiations.As Japan assumed the G7 Presidency in 2023, several ministerial meetings and the G7 Summit are scheduled to take place throughout the year in various Japanese cities, including Sapporo, Karuizawa, Kurashiki, Miyazaki, Takasaki, Sendai, and Mito. The G7 leaders are committed to addressing critical global issues and fostering cooperation among member countries.