Finance chiefs of the Group of Seven major economies are expected to discuss Thursday the state of the global economy, after most of their central banks aggressively raised interest rates to curb inflation, as well as the impact of the conflict in the Middle East.
Russia's war in Ukraine, financial market developments and reform of multilateral development banks are also among the topics likely to be discussed at the meeting of G7 finance ministers and central bank governors in the Moroccan city of Marrakech, according to officials from Japan, which holds the group's presidency this year.
Tensions in the Middle East have spiked since the Palestinian militant group Hamas launched a surprise attack on Israel last weekend, triggering concern about oil supplies from the region.
Masato Kanda, Japan's vice finance minister for international affairs, said Wednesday the finance chiefs would discuss the conflict, noting that financial markets had already been impacted.
"It's unclear whether things will get worse or we will see further spillovers," he told reporters.
Besides chair Japan, the group includes Britain, Canada, France, Germany, Italy and the United States plus the European Union. Their finance chiefs previously met in July when they gathered in Gandhinagar, India, for a meeting of the Group of 20 economies.
Japanese Finance Minister Shunichi Suzuki and Bank of Japan Governor Kazuo Ueda will be attending the G7 meeting in Morocco on the sidelines of gatherings organized by the International Monetary Fund and World Bank.
The G7 countries have shown unity in imposing sanctions on Russia, calling its war in Ukraine "unprovoked" and "unjustifiable" while pledging long-term support for Kyiv.
The group of rich nations is also seeking to make supply chains for critical components more resilient after the COVID-19 pandemic laid bare the vulnerabilities of relying heavily on China and national security risks.
In line with a G7 push to build robust supply chains with like-minded partners, Japan and other nations have decided to set up a fund to help developing nations process critical minerals and produce parts for solar panels and electric vehicles that are necessary for decarbonization.
Britain, Canada, Italy, South Korea and Japan will initially contribute over $40 million to the new World Bank fund.
