G7 Finance Leaders Call for Global Economic Rebalance Amidst Challenges

Finance ministers and central bank governors from the Group of Seven (G7) nations pledged to tackle excessive imbalances in the global economy, according to a draft communique reported by Bloomberg News on Thursday. The G7 leaders emphasized a need for a unified understanding of how non-market policies undermine international economic security.

Meeting in the Canadian Rockies, the finance leaders highlighted the importance of examining market concentration and enhancing international supply chain resilience. German Finance Minister Lars Klingbeil mentioned ongoing negotiations for a joint statement, expressing optimism for achieving consensus. The draft calls for a coordinated global response to entities that lack transparency and do not follow the same rules.

While the draft did not specifically mention China, references to non-market policies are commonly understood to address issues related to China's economic model, including state subsidies. The U.S. Treasury aims to mitigate unfair practices impacting global trade. Additionally, the G7 considered potential sanctions on Russia if peace talks with Ukraine do not progress, underscoring the complex geopolitical challenges intertwined with economic considerations.

(With inputs from agencies.)