Japan’s G7 economic agenda emerges in face of geopolitical gale

JAPAN’S Group of Seven (G7) presidency in 2023 has been dominated by the geopolitical gale that continues to blow from Ukraine. Yet the outlines of the economic agenda have become much clearer in April.

One of the defining priorities of Japan’s chairing of the event will be, ahead of COP28 in Dubai this November, promotion of the energy transition. And this will be a key feature of an Apr 15-16 ministerial meeting of the Western club. Tokyo has long been a leader on this important agenda and has developed numerous green alliances with powers across the world, including the European Union (EU), to try to deliver on decarbonisation while securing a stable energy supply and promoting economic growth.

G7 economic ministers will also discuss new evidence, including from the International Monetary Fund, that geopolitical tensions and growing international economic schisms could increase financial stability risks. The Washington-based economic watchdog has long warned of increased costs, economic friction and GDP output losses associated with the global economy fragmenting into geopolitical blocs centred around the G7 and wider Western democracies.