Why the G7 is worried about global economic imbalances

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PARIS, June 11 (Reuters) – France is using its G7 presidency to spotlight mounting global economic imbalances, as China’s surging exports, chronic U.S. deficits and Europe’s weak investment risk exacerbating trade tensions and exposing the world economy to financial shocks. Mismatches between global trade and capital flows have reached what French President Emmanuel Macron has called “unsustainable” levels, prompting him to put it on the G7 leaders summit next week in Evian, eastern France. G7 finance ministers agreed last month coordinated action, long elusive in the broader G20 grouping, was needed and warned imbalances could otherwise unwind in a financial…

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