In its final statement following the Group of Seven leading industrialised nations said the decision would “reverse the trend towards greater global trade and investment and the jobs they create”.
The communique follows the group’s latest meeting in Japan and places the recovery of global growth firmly at the top of group’s agenda.
Currently, the statement said, while the recovery continues, growth remains moderate and uneven and, since it last met downside risks to the outlook have increased.
Not only does a potential Brexit pose a problem, but the G7 said, “Global trade performance has disappointed in recent years. Weak demand and unaddressed structural problems are the key factors weighing on actual and potential growth” all of which are being complicated by the escalation of geopolitical conflicts, terrorism and refugee flows.
In a bid to combat this and to bolster growth the G7 nations reiterated its commitment to using “all policy tools - monetary, fiscal and structural – individually and collectively, to strengthen global demand and address supply constraints, while continuing our efforts to put debt on a sustainable path.”
It added that, while monetary policy authorities have committed to supporting the economic recovery and overcoming disinflation, this alone is not enough.
“We concur on the importance of strengthening our efforts in a cooperative manner to implement our fiscal strategies flexibly to strengthen growth, job creation and confidence, while enhancing resilience and ensuring debt as a share of GDP [remains] on a sustainable path”
The seven nations also committed to making tax policy as growth-friendly as possible and to among other things