The Banque de France’s deputy governor highlights persistent global current account imbalances, comparing their modern dynamics to historical patterns. France’s G7 presidency aims to address disputes over excessive imbalances, coordinate policies to reduce deficits and surpluses, and mitigate risks of abrupt rebalancing. Key concerns include financial vulnerabilities from U.S. equity market reliance on private sector financing, China’s structural distortions like subsidies and import substitution, and potential global growth impacts from unilateral adjustments. Coordinated strategies, such as gradual reductions in U.S. deficits and China/euro area savings surpluses, are proposed to sustain growth and stabilize markets, leveraging IMF analyses.
© Banque de France 2025.
Summary adapted from material on the Banque de France website (https://www.banque‑france.fr ).
https://www.banque-france.fr/en/governors-interventions/global-imbalances-old-wine-new-bottle
Made by AI. If you spot anything of concern write us at contact@cybach.com. We’ll promptly correct irregularities.