G7 Meeting in Japan: Resilience of Global Economy Against Pandemic and Inflation, Commitment to Fight Climate Change

From the meeting of G7 in Japan emerges that the global economy “showed resilience against multiple shocksincluding the pandemicthe guerra of Russia against Ukraine and theinflation“. Finance ministers meeting at Nigata they concluded that “we must however stay vigilant and be agile and flexible in our macroeconomic policies in a context of heightened uncertainty about global economic prospects”. The Seven then reaffirmed their commitment to the fight against climate change.

‘Determined on climate, we will take full-scale action’ “We are determined to urgently address climate change through large-scale action in this critical decade to keep global temperature rise within the 1.5-degree limit,” the statement reads. G7 meeting. The text also underlines the “need to strengthen international cooperation and coordination on climate change mitigation policies within the G7” and undersigns the commitment to “increase our joint efforts to mobilize finance for the climate, with the aim of addressing the two objectives of climate mitigation and adaptation”.

Visco: “Uncertainty is very high, be careful with judgements” Ignazio Visco also spoke from the Nigata meeting, highlighting the uncertainty of the European and world economic situation. “If there is one thing I would recommend, it is to be attentive to how we judge the outlook for future monetary policy moves,” said the governor of the Bank of Italy. “There is a very high level of uncertainty due to the still unconcluded war”, the energy dimension which for now has returned in terms of costs and the global fragmentation, with the tension with China which requires a diplomatic effort”.

“Banks are cautious, they warn the risks of the economy” The number one of Bankitalia also spoke on the topic of banks. “The risks of the real economy are beginning to be felt and the banks are more cautious at a European level, not just in Italy”. Visco then observed that the slowdown in credit to businesses and households is the answer to two questions: the increase in rates, which has acted on demand, and “the supply of credit linked to the financial tensions that have emerged in the last period. L Europe absorbed it without serious difficulties, but the risk remained”.