Leaders of the world’s top industrial powers will warn that threats to the global economy need to be “managed carefully” in order to achieve a sustainable recovery, according to a draft statement.
Group of Seven leaders will say that while the economy has “strengthened” in the past year, downside risks remain and “continued and sustained growth is needed to bring down unemployment,” according to a draft text obtained by Bloomberg News before their two-day meeting started.
“We will continue to implement our fiscal strategies flexibly to take into account near-term economic conditions, so as to support economic growth and job creation, while putting debt as a share of gross domestic product on a sustainable path,” the draft said.
G-7 leaders are gathering in Brussels for a summit dominated by the U.S.’s and Europe’s response to Russia’s involvement in violence in Ukraine. The world economy, which is still recovering from the worst economic slump since the Great Depression, will form the main part of the agenda when leaders resume their talks tomorrow.
The leaders will pledge to remain vigilant to vulnerabilities in the world’s financial system and “fight all forms of protectionism.” They will also commit to completing trade agreements such as the proposed U.S.-EU pact as soon as possible and tackling tax avoidance and tax evasion, according to the draft.