The seven great economic powers of the world have met in Japan to establish a new strategy that begins by limiting China’s dependence on “critical” raw materials. In addition, the G7 promised to adopt “the needs” to maintain financial stability, after the banking crisis of Credit Suisse in Europe and other banks, including the SVB in the US, have also taken a step forward to show themselves “agile and flexible” in their macroeconomic policies and thus offset economic uncertainties.
In their joint statement published today, the leaders of the Group of Seven expressed confidence in the resilience of the financial system after its adaptation to “multiple shocks”, such as the Covid pandemic, the Russo-Ukrainian war and inflationary pressure, but marked on the need to stabilize “vigilant”. The G7 pledged to pursue growth-oriented policies that “support medium-term fiscal sustainability and price stability.”
The great world powers recognized that “inflation remains high,” but said that the centrals remain “committed” to their policies to stabilize prices.
The multinational forum dedicated a section to the transformation of the financial sector, including banking digitization, which they hope to address in more detail in the future, with the aim of “taking advantage” of the benefits of this innovation and knowing “the potential risks” that they imply for respond better to contingencies.
The G7 has proposed to explore ways to strengthen the current financial system after the recent episode of bankruptcies of several US regional financial institutions and the problems experienced by the Swiss Credit Suisse.
Crypto assets are another of the headaches for the group, which believes that “effective surveillance, regulation and supervision are crucial” to address the risks posed by these activities while supporting “responsible innovation.”
The leaders of Germany, Canada, the United States, France, Italy, Japan and the Kingdom conveyed their concern for the “On Debt Sustainability, Espespect Alcente Between Small and Medium-Sized Economies, and the Need to Implement Organizations to respond at one time to potential problems.