Japan to press G7 for more fiscal stimulus

The Japanese government will encourage the G7 countries to take a coordinated approach to public spending in order to achieve sustainable global economic growth.

    This year's summit of the group of 7 major advanced countries begins on May 26th in the Ise-Shima area of Mie prefecture, central Japan. The G7 officials continue working-level negotiations towards a declaration that will be issued at the end of the summit. 

    Japanese officials hope that the G7 leaders will share their view that there are negative risks and uncertainties over the global economic outlook due to China's economic slowdown and lower oil prices, Japan's broadcaster (NHK World) reported Tuesday.

    They want the declaration to demonstrate the resolve of the G7 nations by showing cooperation in a wide range of areas, including increasing government spending to boost global economic growth. Germany and some other countries place a high priority on fiscal discipline and have a cautious approach towards pump-priming. 

    Japan's Prime Minister Shinzo Abe wants to narrow these differences when he meets leaders during his planned trip to Europe next week. Japanese officials also hope that the declaration will make it clear that the G7 nations will cooperate closely in dealing with North Korea's nuclear and missile development and China's maritime activity, as well as terror attacks and the refugee crisis.