ISE SHIMA: Pumping up the world economy is an “urgent priority”, G7 leaders said on Friday, as they warned there could be dire global consequences if Britain decides to leave the European Union.

The Group of Seven industrial powers cautioned that the worldwide economy was patchy and faced unwelcome headwinds, but disputes erupted over how bad things actually are and the best course of action.

Wrapping up their meeting in rural Japan, the leaders endorsed a pick-and-mix approach to dealing with the malaise that has lingered since the financial crisis erupted in 2008.

“Global growth is our urgent priority,” the G7 said in a final statement. “Taking into account country-specific circumstances, we commit to strengthening our economic policy responses in a cooperative manner and to employing a more forceful and balanced policy mix, in order to swiftly achieve a strong, sustainable and balanced growth pattern.”

The strained consensus reflects behind-the-scenes clashes within the grouping of rich nations.

Prime Minister Shinzo Abe argued that the global economy faced the risk of a “crisis”, and drew comparisons with the mood when Japan last hosted the exclusive club, in 2008 just months ahead of the collapse of Lehman Brothers.

“To that, one leader questioned whether the degree of the current situation was negative enough to use the term ‘crisis’,” a senior Japanese official said.

That leader was Angela Merkel, the Asahi Shimbun newspaper said Friday, who was backed by International Monetary Fund chief Christine Lagarde, according to Bloomberg News.

At his post-summit press conference, however, Abe put a different gloss on it.

“We shared a strong sense of crisis,” he told reporters of his discussions with fellow leaders.

Some observers, however, said the high-profile meeting didn’t deliver much.

“We know there are different views on fiscal policy but the statement simply concludes that fiscal policy should be implemented ‘flexibly’ in order to ‘promote growth’,” said Andrew Kenningham, Senior Global Economist at research house Capital Economics. “That really says nothing at all.”

BREXIT: Leaders were unequivocal though on their attitude to one of the risks facing the global economy, and came out firmly against the prospect of a so-called “Brexit”.

“A UK exit from the EU would reverse the trend towards greater global trade and investment, and the jobs they create, and is a further serious risk to growth,” they said in a declaration after two days of talks.

British Prime Minister David Cameron, who has campaigned for his nation to remain in the 28-country bloc, seized on the unified G7 position.

“The communique is very clear about the economic dangers and economic risks” of Brexit, he told a press conference.

Published in Dawn, May 28th, 2016