Global Courant 2023-05-13 09:05:57
NIIGATA, Japan — Financial leaders from the Group of Seven (G-7) bloc of wealthy industrialized countries warned of the threat of greater economic uncertainty on Saturday as they wrapped up three days of meetings.
In their communiqué, they cited reasons such as Russia’s continued invasion of Ukraine and rising global inflation that clouded the global outlook.
“We must remain vigilant and remain agile and flexible in our macroeconomic policies amid heightened uncertainty about the global economic outlook,” said finance ministers.
Though not mentioned in their 14-page statement, the threat of a default by the United States as early as June 1 if Washington fails to raise its debt ceiling also loomed large at the meetings.
German Finance Minister Christian Lindner had urged American politicians to make a “mature” decision, with any default sure to wreak havoc on the global economy.
China was also not mentioned in the communiqué, although it was also the elephant in the room at the meeting due to its alleged “economic coercion” on countries it disagrees with.
Japan is at the forefront of efforts to help low- and middle-income countries in the so-called Global South diversify their supply chains in the name of energy security.
The Organization for Economic Co-operation and Development (OECD) had said in a report that China has surpassed the G-7 countries in its ability to produce critical products needed for climate change, including wind turbines, solar panels and batteries.
Without mentioning China, G-7 finance ministers said in the statement that they “recognized the urgent need to address existing vulnerabilities within the highly concentrated supply chains of key clean energy products.”
“Diversification of supply chains can help ensure energy security and help us maintain macroeconomic stability,” the statement said.
A so-called “Partnership for Rise (Resilient and Inclusive Supply-chain Enhancement)”, which is being developed with interested countries in collaboration with the World Bank, is expected to be launched by the end of the year.
“By combining mutually beneficial collaboration through finance, knowledge and partnerships, Rise aims to support low and middle-income countries in playing a greater midstream and downstream role in supply chains of clean energy products,” the statement said.
The meetings in the central Japanese coastal city of Niigata are a prelude to the G-7 leaders’ summit in Hiroshima from May 19-21, where China’s assertiveness and Russia’s invasion of Ukraine will dominate the agenda.
The G-7 consists of Britain, Canada, France, Germany, Italy, Japan and the US. The European Union is an “unlisted” member without the right to the rotating presidency.
