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Gist of PM Abe’s remarks at G7 Ise-Shima Summit, May 26

Global economy

 

With the newly emerging economies entering an adjustment phase, it is the G7 that must exercise leadership and play the role of a driving force in global economic growth.

 

There is growing uncertainty in the global economy as a consequence of sagging oil prices, the terrorist threat, and the refugee issue. The global economy is plagued with various downside risks. Commodity prices in the world have dropped by around 55% since 2014 and growth in investments in the newly emerging countries has dropped below the level during the Lehman Shock. Growth rates of GDP and imports are also at their lowest since the Lehman Shock.

 

The Toyako Summit was held shortly before the Lehman Shock, but it failed to prevent the crisis. We do not want to make the same mistake. The global economy is at a crossroads. We must not turn a blind eye to the risks. We must realize that mistakes in policy response may plunge the global economy into crisis.

 

It is essential for the G7 to send out a stronger message on a concerted effort to put the global economy back on track to recovery. We must discuss in depth the importance of implementing flexible fiscal strategies, resolute promotion of structural reforms, and closer cooperation in taking these steps.

 

Sharing common values

 

We are facing unilateral challenges to the international order we have built. The Crimean crisis, the South China Sea, terrorism, and violent extremism are increasingly serious issues. It is the G7, which share common values, that must take the lead in responding to these challenges.

 

Panama Papers

 

Fairness is important in taxation. It is necessary for the G7 to act in concert to implement the agreement in order to arrive at fundamental solutions to taxation issues. Tax evasion and illegal transfer of capital must be dealt with strictly.

 

China

 

We must work closely to ensure that China follows international rules and coexists with us for mutual prosperity. The newly emerging economies are gradually slowing. I would like to closely watch the geopolitical risks and the impact of oil prices.

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