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G7 Summit focuses on economy, ISIL, refugees


05-27-2016 00:28 BJT

Leaders from the Group of Seven as well as European Union representatives, are convening in the Japanese city of Ise-Shima.

The G7 leaders kicked off the annual meet with a visit to the spiritual center of Japan. The Ise-Jingu Shrine, the holiest site in Japan's Shinto religion.

Incidentally, It is where Prime Minister Shinzo Abe started off the New Year, wishing for success in his policies

Certainly, Abe might feel the need for a prayer as leaders are split over fiscal policies to boost global economy.

The G7 leaders are in unity on number of topics, such as combatting terrorism, tax evasion and refugees. However, reaching an agreement on fiscal policy to revitalize sluggish global economy was not as easy as Prime Minister Shinzo Abe had hoped for.

Abe was hoping to show Japan’s initiative by taking the lead in tackling the sluggish global economy.

The Prime Minister said to have presented data, showing the global economy is almost as severe as so called the “Lehman Shock” in 2008” urging for an appropriate action.

"We rigorously debated the global economy this time, and we agree that it faces a great risk, at this moment. It was a great achievement that we were able to put together and agree to an Ise-Shima economic initiative in order to face those very risks," Abe said.

However, regional concerns are preventing from the G7 members to reach a full agreement.

Concerns over Britain’s referendum whether to exit the European Union also raised concerns. The outcome of the referendum could impact the markets.

Japan fears that the outcome of the referendum may spur purchase of the Japanese currency. Which will impact domestic sentiment, further weighing down on Japan’s economic recovery.

The G7 leaders are expected to reaffirm their commitment to stability in the foreign exchange market.

Increasing threats from the Islamic State and influx of refugees to Europe where also one of the top topic on the table.

More global aid was called for to support the refugee crisis. Greatly impacting the local economies.

Final communiqué is to be released at the end of all the sessions on Friday. Experts are carefully out watching the wording and how much agreement will be reached to achieve sustainable recovery in world economy.

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