Statement by the Hon. Shunichi Suzuki, Governor of the Bank for Japan - WBG Governor's Statement No. 4 - October 14, 2021

Jul 19, 2026

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A governor’s statement outlines the global and Japanese economic outlook following the COVID-19 crisis, emphasizing steady recovery, persistent risks, and the need for coordinated policy action. It calls for structural reforms to raise potential growth and productivity, and for ensuring long-term public finance sustainability once recovery is established. It then details Japan’s expectations for the IMF and World Bank on debt transparency, common framework implementation, debt data reconciliation, and support mechanisms such as SDR allocation, PRGT scaling, and resilience financing.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages5

Reading Time13 min

I. THE GLOBAL ECONOMY AND THE JAPANESE ECONOMY

Policy priorities for recovery and growth

Japan’s outlook under the new administration

II. EXPECTATIONS FOR THE IMF AND THE WORLD BANK

Debt transparency, sustainability, and the Common Framework

Japan’s expectations for IMF support and SDR initiatives

Public Disclosure Authorized Public Disclosure Authorized WBG Governor's Statement No. 4 October 14, 2021 Statement by the Hon. SHUNICHI SUZUKI, Governor of the Bank for JAPAN Statement by the Hon. Shunichi Suzuki, Governor of the Bank for Japan I. THE GLOBAL ECONOMY AND THE JAPANESE ECONOMY The global economy is making steady recovery from the crisis, thanks to unprecedented policy responses and the spread of vaccines against the COVID-19. However, various risks and uncertainties remain significant, including the spread of new variants, delays in vaccination and accumulation of government debt. In addition, differences in the progress of vaccination have further increased the divergence of the global economic and social situation. In order to achieve a stable economic recovery and sustainable growth, it is essential to mobilize all the policies that we can take for as long as required under the current situation. Atthe same time, we should take measures to raise the potential growth rate and to boost productivity through structural reforms, which look ahead to the post COVID-19. In addition, once the recovery is firmly established, it will be necessary to ensure the long-term sustainability of public finances. Member countries will be required to promote focused and comprehensive policies based on these medium-and long-term perspectives. Although the Japanese economy is still in a severe situation, it is steadily picking up, especially in export and capital investment. While we need to closely monitor domestic and international situations of the COVID-19 infections as well as volatility in capital markets, the economy is expected to recover as a result of progress in vaccinations and improvements in overseas economies. While paying attention to the soundness of the fiscal and financial sectors, we will implement new economic policies under the new administration formed on October 4. Through this, we will realize a virtuous cycle of growth and distribution, and will develop a post COVID-19 society. II. EXPECTATIONS FOR THE IMF AND THE WORLD BANK First, let me express Japan’s expectations for both organizations. Securing debt transparency and sustainability is indispensable for sustainable economic growth as well as sound macroeconomic management in developing countries. We have yet to see any debt treatment provided since the agreement by the G20 and Paris Club on the Common Framework last year. The Debt Service Suspension Initiative (DSSI) will expire at the end of 2021. In this context, the G20 has committed to implement the Common Framework in a timely, orderly, and coordinated manner. Japan expects the G20 to efficiently address debt vulnerabilities in developing countries within predictable timeframes by setting deadlines under this framework. Debt treatments should be swiftly provided to the three countries which have already requested treatments under the Common Framework. Japan expects the Common Framework to effectively function in supporting countries facing debt vulnerabilities more broadly. To prevent future crises, Japan expects the World Bank and the IMF to step up their efforts of analyzing issues related to debt transparency and providing debt-related technical assistance. Furthermore, Japan calls for progress in debt data reconciliation (DDR) of debtor countries proposed by the World Bank and the IMF. It is important for debtor countries to understand accurate debt data and enhance capacity to properly manage their debt through DDR. It is also crucial for both debtor countries and creditor countries that accurate Debt Sustainability Analyses will be conducted based on already-reconciled debt data. Next, I will touch upon Japan’s expectations for the IMF. Developing countries have been severely affected by the pandemic. Japan highly commends that the IMF has been playing a critical role in supporting them. We welcome the implementation of the new SDR allocation of USD 650 billi

FAQs

What main risks and uncertainties does the statement highlight for the global economy?

It highlights risks from new variants, vaccination delays, and accumulated government debt, along with widening divergence due to differences in vaccination progress.

What does Japan expect regarding the G20 Common Framework and debt treatments?

Japan expects the G20 to address debt vulnerabilities efficiently within predictable timeframes, and for swift debt treatments for countries that have already requested support under the framework.

Which IMF and World Bank actions does Japan request related to debt transparency?

Japan calls for increased efforts on analyzing debt-transparency issues, providing debt-related technical assistance, and advancing debt data reconciliation (DDR) to support accurate debt sustainability analyses.

Jul 19, 2026

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