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Abe Invokes Lehman Crisis Comparisons at G-7 Economic Talks

  • Abe presented data on commodity prices, emerging economies
  • Some disagreement on risk of a crisis: Japan official
Bloomberg business news

Top European Concerns for G-7 Leaders Meeting in Japan

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Japanese Prime Minister Shinzo Abe presented documents to his fellow Group of Seven leaders Thursday that he said indicated a risk of the world economy falling into a crisis on the scale of the 2008 Lehman shock if appropriate policy measures weren’t taken.

Abe presented documents showing that commodity prices had fallen by 55 percent between 2014 and January 2016, similar to the margin by which they fell in 2008-2009, among other data. The presentation at the summit in Mie Prefecture in central Japan could play into domestic economic policy, as Abe has frequently said that he would proceed with a planned increase in the sales tax in April 2017 unless there is an event on the scale of the Lehman shock or a major earthquake.