G7: Financial leaders pledge to contain inflation

2023-05-13 08:22:02

NIIGATA, Japan (AP) — The Group of Seven’s top financial leaders rallied Saturday in their support for Ukraine and a determination to apply sanctions once morest Russia for its aggression, but made no direct mention of China.

Finance ministers and central bankers from the seven richest nations wrapped up three days of talks in Niigata, Japan, with a joint statement pledging to control inflation, help countries that need to face bulky debts and strengthen financial systems.

In addition, they will collaborate in the creation of more stable and diversified supply chains to develop clean energy sources and in “increasing economic resistance at a global level in the face of various shocks,” the note added.

The statement did not include any specific mention of China or “economic coercion” to achieve political goals, such as penalizing companies from countries whose governments take actions that upset others.

Comments made this week regarding such moves by China had provoked an angry reaction from Beijing. Officials attending the summit in the Japanese port city were reluctant to outright condemn the Asian giant given the keen interest most nations have in maintaining good relations with the rising power, which is also the world’s second-biggest economy. world.

The finance leaders’ talks laid the groundwork for next week’s G7 leaders’ summit in Hiroshima, which US President Joe Biden is expected to attend despite the debt ceiling crisis. which might result in a national bankruptcy without resolution in the coming weeks.

The G7 economies represent barely a tenth of the world’s population but around 30% of economic activity, compared to half that they accounted for 40 years ago. Developing economies such as China, India and Brazil have made great strides, raising questions regarding the relevance of the Group of Seven and its role at the forefront of a global economy that is increasingly dependent on the growth of less wealthy nations.

___

Associated Press writer Haruka Nuga contributed to this report.

1683971801
#Financial #leaders #pledge #inflation