News Now Forever: G-7 finance leaders seek to reassure on global economy

G-7 finance leaders seek to reassure on global economy

Elaine Kurtenbach, Associated Press

May 20, 2016

Photo: Elaine Kurtenbach, STF

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U.S. Treasury Secretary Jacob Lew talks to reporters Friday in Sendai, Japan. Group of Seven finance officials discussed ways to revitalize the global economy.

Photo: Elaine Kurtenbach, STF

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Japanese Finance Minister Taro Aso, center back, presides over a meeting of finance ministers and heads of central banks of the Group of Seven in in Sendai, northern Japan, Friday, May 20, 2016. Top finance officials of the G7 industrialized economies kicked off their two-day meeting over discussions on revitalizing the global economy on Friday. (Yohei Kanezashi/Kyodo News via AP) JAPAN OUT, MANDATORY CREDIT less

Photo: Yohei Kanezashi, SUB

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Photo: Yohei Kanezashi, SUB

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Japanese Finance Minister Taro Aso, rightr, and Bank of Japan Gov. Haruhiko Kuroda talk each other during a meeting of finance ministers and heads of central banks of the Group of Seven in in Sendai, northern Japan, Friday, May 20, 2016. Top finance officials of the G7 industrialized economies kicked off their two-day meeting over discussions on revitalizing the global economy on Friday. At right is International Monetary Fund Managing Director Christine Lagarde. (Yohei Kanezashi/Kyodo News via AP) JAPAN OUT, MANDATORY CREDIT less

Photo: Yohei Kanezashi, SUB

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Japanese Finance Minister Taro Aso, center, speaks during a meeting of finance ministers and heads of central banks of the Group of Seven in in Sendai, northern Japan, Friday, May 20, 2016. Top finance officials of the G7 industrialized economies kicked off their two-day meeting over discussions on revitalizing the global economy on Friday. At right is International Monetary Fund Managing Director Christine Lagarde. (Yohei Kanezashi/Kyodo News via AP) JAPAN OUT, MANDATORY CREDIT less

Photo: Yohei Kanezashi, SUB

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Bank of Japan Gov. Haruhiko Kuroda, right, speaks with President of European Central Bank Mario Draghi prior to a symposium in Sendai, northern Japan Friday, May 20, 2016. Finance ministers and central bankers of the Group of Seven major economies will hold the annual summit later Friday. (Yohei Kanezashi/Kyodo News via AP) JAPAN OUT, MANDATORY CREDIT less

Photo: Yohei Kanezashi, SUB

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U.S. Treasury Secretary Jacob Lew talks to reporters during a press briefing in Sendai, northern Japan, Friday, May 20, 2016. Top finance officials of the Group of Seven industrialized economies kicked off their two-day meeting over discussions on revitalizing the global economy on Friday. (AP Photo/Elaine Kurtenbach) less

Photo: Elaine Kurtenbach, STF

AKIU, Japan – Finance leaders of major industrial countries meeting in Japan need to find ways to use all the “policy levers” they have to help counter anxiety over global economic prospects, U.S. Treasury Secretary Jacob Lew said Friday, in remarks echoed by his Japanese hosts.

The consensus was that while there is no one-size-fits-all approach, all economies are facing a stifling lack of demand, and the private sector must play a pivotal role in helping spur growth.

Finance ministers and heads of central banks of the Group of Seven spent Friday discussing ways to use monetary policy, government spending and longer-term reforms to help support growth for struggling economies.

Lew said he hoped the talks would keep on track commitments made during recent discussions in China by the wider Group of 20 major economies, where members pledged to not manipulate exchange rates to their own advantage.

A recent rise in the value of the Japanese yen against the U.S. dollar is adding to pressures on Japanese companies that had reaped record profits as the yen weakened in recent years, fattening earnings brought back to Japan in yen terms.

Japanese Finance Minister Taro Aso reiterated Tokyo’s desire to keep exchange rates stable but also its commitment not to engage in “competitive devaluation of currencies.”

Aso said Friday’s talks also touched on non-financial risks to growth, such as the refugee crisis, terrorism and a looming referendum in Britain over whether to leave the European Union.

Such a move by the Briish is viewed as likely to cause major disruptions both in Europe and in global financial markets.

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