Although the statement did not mention the deadlock in negotiations to increase the US debt limit, the issue was constantly present in the discussions.
The stagnation has weighed on markets as borrowing costs have risen due to aggressive monetary tightening by US and European central banks.
“The global economy has shown resilience in the face of multiple shocks, including the COVID-19 pandemic, Russia’s war of aggression against Ukraine and associated inflationary pressures,” the finance ministers and central bankers said.
“We must remain vigilant and remain agile and flexible in our macroeconomic policy amid heightened uncertainty about the global economic outlook,” they added in the post-meeting statement.
US Treasury Secretary Janet Yellen, who has said the first US default in history could occur in a matter of weeks if the impasse is not broken, told Reuters on Saturday that impasse is “more difficult” than in the past, but held out hope for a solution.
Britain’s Chancellor of Finance Jeremy Hunt said it would be “absolutely devastating” if the United States fails to reach an agreement to raise the federal borrowing limit and sees its economic growth “disrupted.”
The G7 central bankers vowed to combat “high” inflation and ensure that expectations about future price developments remain well anchored, a sign that many of them will not let down their guard against stubbornly high inflation.
Japanese Finance Minister Shunichi Suzuki told a press conference after the meeting that the issue of the debt ceiling was discussed at a dinner on Thursday night. He did not want to give more details.
