With the G7 Evian Summit about to take place in France, BWC Advisory Council Member Mark Sobel discusses the crucial implications of this year’s meeting. President Emmanuel Macron, this year’s G7 chair, proposes a focus on global imbalance, primarily addressing large account deficits in the US, as well as Chinese and European surpluses. He emphasizes the dangerous likelihood that American overconsumption will result in a financial crisis, while Chinese underconsumption and over investment has led to a massive current account surplus and undervalued currency. Meanwhile, Europe faces underinvestment and a lack of competitiveness. As we await the meeting of the G7 countries, Sobel emphasizes that member countries must first get their own domestic economies in order before it is possible to strengthen the world economy. 

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All views expressed by members are their own and not reflective of the views of the Bretton Woods Committee.