WBG Governor's Statement No. 12 - Statement by Shunichi Suzuki, Governor of the Fund and the Bank for Japan - October 14, 2022

Jul 19, 2026

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Japan reiterates its strongest condemnation of Russia’s war of aggression against Ukraine and states that efforts to acquire territory by force violate international law, including the UN Charter. It highlights the protection of civilians and condemns atrocities as breaches of international humanitarian law and war crimes. The statement examines impacts on global and Japanese economic conditions, including inflation, food insecurity, debt stress, and excessive FX volatility, and outlines policy priorities. It also sets expectations for the IMF and World Bank on debt treatment, transparency, and food insecurity support.

LanguageEnglish

CategoryResearch & Report

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Pages7

Reading Time18 min

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WBG Governor's Statement

I. The Global Economy and the Japanese Economy

II. Expectations for the IMF and the World Bank

Public Disclosure Authorized Public Disclosure Authorized WBG Governor's Statement No. 12 October 14, 2022 Statement by the Hon. SHUNICHI SUZUKI, Governor of the Fund and the Bank for JAPAN Statement by the Hon. Shunichi Suzuki, Governor of the Fund and the Bank for Japan Firstly, Japan reiterates the strongest condemnation against Russia for its continued war of aggression against Ukraine. Russia's attempts to acquire territory by force, including its purported "incorporation" of some Ukrainian territory, are against international law, including the United Nations Charter. Such attempts are invalid and go diametrically against the principle of the rule of law in the international community. Moreover, the atrocities against civilians are breaches of international humanitarian law and war crimes. We reiterate that maintaining peace is indispensable for international economic and social cooperation, and Russia’s acts in violation of this are absolutely intolerable. I. THE GLOBAL ECONOMY AND THE JAPANESE ECONOMY Russia's war of aggression against Ukraine, along with severe humanitarian and food insecurity, is exacerbating global economic challenges. We emphasize that ending this war is the most direct action that can promote global economic stability. Countries are facing significant price increases, energy supply constraints, and supply chain disruptions, with some countries experiencing inflation levels not seen in decades. The debt situations in low-and middle-income countries are becoming more serious as the United States and other countries accelerated their pace of monetary policy tightening and the global financial environment becomes increasingly severe. As many countries have limited fiscal buffers against the background of policy responses to the pandemic for more than two anda half years, they need to carefully steer their policies and ensure coordination among various policies. In this context, member countries are asked to respond flexibly to the current crisis, including through credible fiscal rules that create policy space, and support vulnerable households through temporary and targeted fiscal measures while addressing inflation through appropriate policy responses. Once the recovery is firmly established, taking concrete steps to ensure long-term fiscal sustainability is also essential. We are deeply concerned about the rapidly increasing volatility in the foreign exchange market. Concerning the Japanese yen, we have seen unprecedentedly sharp and onesided movements, with speculative activities behind such moves. Against this backdrop, we conducted foreign exchange intervention last month for the first time since 2011. In principle, exchange rates should be determined by markets. Still, as internationally agreed at the IMFC and in the G20/G7,“excessive volatility or disorderly movements in exchange rates can have adverse implications for economic and financial stability.” The international community needs to pay close attention to the impact of recent exchange rate movementson inflation, capital flows, and debt problems, and to address these problems appropriately. The Japanese economy is expected to show movements of picking up, supported by the effects of various policies, as the transition to a new phase of “with corona”. On the other hand, we need to pay close attention to the risk that a downturn in overseas economies may put downward pressure on the Japanese economy against the backdrop of global monetary tightening and other factors. The Government will quickly implement measures in response to price hikes to achieve a virtuous cycle of growth and distribution. In order to move forward with a new form of capitalism, the Government will also accelerate public and private sector investment with an emphasis on four key areas: (i) investment in people,(ii) investment in science, technology and innovation,(iii) investment in start-ups, and (iv) investment in green transformation (GX), a

FAQs

What does Japan emphasize regarding the war in Ukraine?

Japan reiterates its strongest condemnation of Russia’s war of aggression, stating that attempts to acquire territory by force violate international law. It also highlights that atrocities against civilians are breaches of international humanitarian law and war crimes.

How does the statement describe current global economic risks?

It says the war and severe humanitarian and food insecurity are worsening global economic challenges, including price increases, energy supply constraints, supply chain disruptions, and rising inflation. It also warns that debt situations in low- and middle-income countries are becoming more serious.

What are Japan’s expectations for the IMF and the World Bank?

Japan calls for swift debt treatment under the Common Framework for low-income countries and coordinated efforts by all creditors to restore debt sustainability for vulnerable middle-income countries. It also expects strengthened analysis on debt transparency, capacity building, reform options, and support through initiatives like the IMF’s Food Shock Window.

Jul 19, 2026

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