ISE-SHIMA (Japan) – Leaders of the Group of Seven (G-7) advanced economies pledged on Friday to seek strong sustainable global growth, as they stressed their “special responsibility” in leading global efforts against a myriad of threats to avoid falling into another crisis.
“Global growth remains moderate and below potential, while risks of weak growth persist,” the G-7 leaders said in a communique after a two-day summit in central Japan. “Global growth is our urgent priority,” they added.
The global economy is plagued by weak demand and structural issues, but there are also “potential shocks of a non-economic origin”, the leaders said. These include the possibility of Brexit, or Britain exiting from the 28-member European Union (EU) bloc, which will be decided at a June 23 referendum.
Britain’s pull-out from the EU will “reverse the trend towards greater global trade and investment and the jobs they create, and is a further serious risk to growth”, said the leaders.
They also vowed to bolster the resilience of their respective economies to avoid another crisis.
“We have strengthened the resilience of our economies in order to avoid falling into another crisis and, to this end, commit to reinforce our efforts to address the current economic situation by taking all appropriate policy responses in a timely manner,” they said.
The annual G-7 summit brings together leaders of Britain, Canada, France, Germany, Italy, Japan and the United States. The EU is also represented in the grouping.
The leaders were committed to strengthening economic policy responses in a “cooperative manner and to employ a more forceful and balanced policy mix”, referring to the measures of monetary policy, fiscal stimulus and structural reforms.