2019.05.2704:19:00UTC+00BoJ Chief Kuroda Sees Downside Risks To Global Economy

Bank of Japan Governor Haruhiko Kuroda said there remains a high degree of uncertainty regarding the global economy and downside risks are large.

At the keynote speech at the T20 Summit on Monday, Kuroda cited trade tensions, effects of economic policy measures, Brexit and vulnerability from accumulated debt in the private and public sectors as downside risks.

The T20, or Think 20, is the research and policy advice network for the G20 that provides inputs for public sector policy management.

Kuroda observed that although trade negotiations have progressed somewhat, a number of issues remain to be resolved. Further, he noted that in addition to Brexit and political uncertainties in Europe, political destabilization due to increasing income inequality could affect the global economy.

As the G20 finance ministers and central bank governors meeting is fast approaching, Kuroda said they will analyze the trend and background of global imbalances and discuss the appropriate policy actions.

Global imbalances will be discussed intensively at the G20 meeting this year, he added.

"In particular, we will promote understanding that we need to examine whether the current levels of global imbalances are appropriate or excess, taking into account the importance of structural factors such as aging," said Kuroda.

"As president of the G20, we will lead policy discussions at the meeting with all the relevant information and appropriate evaluations of global economic conditions," the central banker said.

Japan is set to host the G20 summit in Osaka on June 28 and 29.

Ahead of that, the ministerial meeting on trade and digital economy and the finance ministers and central bank governors meeting will be held on June 8 and 9 at Tsukuba and Fukuoka, respectively.