Finance ministers and central bank governors from the Group of Seven (G7) democracies agreed to address "excessive imbalances" in the global economy and proposed a tougher stance against Russia, during a meeting in Banff, Alberta in Canada.
The G7 officials discussed global economic challenges, support for Ukraine, financial crime, and development initiatives.
Global Economy
- The G7 is committed to addressing global economic challenges and promoting sustainable growth.
- Economic policy uncertainty has decreased, but macro imbalances remain problematic.
- Central banks focus on price stability and maintaining well-functioning financial markets.
"We… underscore the need to address excessive imbalances and strengthen macro fundamentals, given potential global spillovers. We call on the IMF to continue to enhance its analysis of imbalances in both its bilateral and multilateral surveillance. We continue to engage with each other and with international partners to advance international cooperation and deliver prosperity.
“Strong and sustainable economic growth is the cornerstone of economic prosperity. We are committed to working together to achieve a balanced and growth-oriented macroeconomic policy mix that supports our economic security and resilience and ensures that all of our citizens can benefit from that growth.”
Economic Resilience Security
- Emphasis on understanding non-market policies and their impact on economic security.
- Calling on international organisations to address data gaps related to market concentration and supply chain resilience.
- Recognition of risks from low-value shipments and a commitment to explore solutions.
Support for Ukraine
- The G7 condemned Russia's war against Ukraine and pledged ongoing support for Ukraine's sovereignty.
- Ukraine's recovery costs are ~ US$524 billion over the next decade.
- Commitment to ensure that Russia-supporting entities do not benefit from Ukraine's reconstruction.
The communiqué said: "Ukraine has suffered significant destruction… We welcome ongoing efforts to achieve a ceasefire. If such a ceasefire is not agreed, we will continue to explore all possible options, including options to maximise pressure such as further ramping up sanctions.”
Bolstering Long-term Growth Productivity
- Importance of public policies that enhance innovation and labor force participation.
- Structural reforms are essential for sustainable economic growth.
- Stable macroeconomic environments are crucial for long-term investment.
Artificial Intelligence
- Discussion on AI's potential to boost productivity and the need for monitoring risks.
- The OECD framework is appreciated for quantifying AI-driven productivity gains.
Financial Sector Issues
- Commitment to a stable financial sector and focus on non-bank financial intermediaries.
- Need for enhanced cross-border payments and cybersecurity measures.
- Central banks to explore quantum technology's impact on financial stability.
Financial Crime Call to Action
- G7 reaffirmed its commitment to combat financial crime, including money laundering and terrorist financing.
- FATF's role as a standard setter in AML/CFT/CPF efforts was emphasised.
- The need for improved international cooperation and information sharing to combat financial crime.
Support for Developing Countries
- Commitment to the World Bank-led RISE Partnership for better integration of low- and middle-income countries into clean energy supply chains.
- Emphasis on supporting vulnerable countries facing debt challenges and improving debt transparency.
- MDB reforms aim at enhancing effectiveness and mobilising private capital for development.
"We found common ground on the most pressing global issues that we face," Canadian Finance Minister Francois-Philippe Champagne told the press conference.
"I think it sends a very clear signal to the world... that the G7 is united in purpose and in action."
The document did not name China directly, nor did it mention the tariffs imposed by United States President Donald Trump.
Related content
