G7 leaders warn about Brexit and push for global growth

The global economy was the biggest theme of the G7 Summit that took place in Ise-Shima, central Japan. Brexit concerns were also on the agenda.

The leaders of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States warned that a vote for the UK to leave the EU at the June 23 referendum would seriously threaten the global economy.

“Global growth is our urgent priority,” said the communiqué agreed by the G7 leaders. They promised “more forceful” policies to boost global growth but had some differences about fiscal stimulus.

In a declaration issued during their summit, the G7 leaders said that “There are potential shocks of a non-economic origin”.

“A UK exit from the EU would reverse the trend towards greater global trade and investment, and the jobs they create, and is a further serious risk to growth.”

Japanese Prime minister Shinzo Abe came into the summit determined to win support for stimulus. He failed to move Britain or Germany but has raised a G7 alarm about weak global demand.

The summit is unlikely to change economic policy except in Japan, where Mr Abe is set to use it as reason to postpone a rise in consumption tax from 8 per cent to 10 per cent scheduled for next spring.

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