G20 Finance Leaders Kick Off Meeting in U.S.

Asheville, North Carolina, Aug. 31 (Jiji Press)–Finance ministers and central bank chiefs from the Group of 20 advanced and emerging economies began two-day talks in Asheville in the U.S. state of North Carolina on Monday. On the first day, participants mainly discussed measures to deal with downside risks to the global economy amid Middle East tensions and accelerate private sector-led growth, a priority for the United States, which holds this year’s G20 presidency. Japan was represented by Finance Minister Satsuki Katayama and Bank of Japan Governor Kazuo Ueda. Katayama said at the meeting that it is important to diversify supply chains and make them resilient, warning that arbitrary export restrictions on critical minerals and other key resources will have a negative impact on the global economy. On the Japanese economy, she explained the government policy of boosting strategic public-private investment over multiple fiscal years to raise the growth rate. Tokyo will quit its fiscal management practice reliant heavily on supplementary budgets and lower the ratio of outstanding debt to gross domestic product steadily, Katayama also said. The G20 members discussed measures to promote investment and innovation for private sector-led growth with U.S. business leaders. Katayama emphasized the importance of balancing regulatory reform and appropriate financial regulation. Also on Monday, the finance ministers and central bank chiefs from the Group of Seven major powers had a meeting, mainly discussing the world economy, advanced artificial intelligence models and the situation in Ukraine, still battling Russia’s invasion. Ukrainian Finance Minister Sergii Marchenko joined the G7 officials online. They exchanged views on additional support for the war-torn country and sanctions against Russia. The G7 members also confirmed the importance of free and safe passage through the Strait of Hormuz and financial risks posed by the spread of AI technology. On Tuesday, G-20 officials are expected to discuss ways to adjust current account imbalances driven by China’s overproduction, along with excess debt plaguing developing economies. They aim to adopt a joint statement. END [Copyright The Jiji Press, Ltd.]