G7 Nations Growing Concerned Over Global Economic Conditions, Agreement Reached

Finance ministers from the Group of Seven (G7) nations have agreed on collective efforts to stabilise the current global economy. Uncertainty stemming from the United States (US) and Israel’s war against Iran is increasingly a point of concern.

Japan’s Finance Minister Satsuki Katayama stated after the meeting in Washington that central banks are inclined to adopt a wait-and-see approach in monetary policy. She acknowledged the difficulty in determining whether the fragile ceasefire in the war, which has lasted over a month, will lead to long-term peace.

“I believe there is a common understanding that we need to do our best to ease the situation, including ensuring freedom of navigation in the Strait of Hormuz,” she said, as reported by Kyodo on Thursday, 16 April 2026.

Katayama noted that US Finance Minister Scott Bessent did not attend the meeting due to a scheduling conflict, adding that a joint non-G7 statement drafted by the UK essentially reflects the general views of all parties.

The G7 finance ministers and central bank governors, comprising the UK, Canada, France, Germany, Italy, Japan, the US, and the European Union, did not issue a joint communique after concluding their talks.

Together with the UK, finance ministers from Australia, Japan, Sweden, the Netherlands, Finland, Spain, Norway, Ireland, Poland, and New Zealand stated in a document on the Middle East that impacts on growth, inflation, and markets will persist even if the conflict ends permanently.

In the document, the ministers also committed to promoting cooperation and integration to support regional and global stability. The war has also exposed deepening divisions between the US and Europe.

The world has welcomed the two-week ceasefire agreement between the US and Iran reached last week, but the end of the conflict is not yet in sight, with the Strait of Hormuz—a vital global trade route off Iran’s southern coast—still largely closed to maritime traffic.

During the two-hour G7 meeting held on the sidelines of the International Monetary Fund (IMF) and World Bank spring meetings, participants also discussed support for Ukraine and cooperation in securing critical minerals vital for high-tech industries and national security, according to Katayama.