|
The Group of Seven finance ministers and central bank chiefs vowed Saturday to help stabilize volatile situations in financial markets but stopped short of proposing concrete measures, including unified interest rate cuts, to fend off a global recession.
Finance chiefs from the Group of Seven industrialized countries join a photo session Saturday in
Commenting on the global economy, the G7 said the world faces a "more challenging and uncertain" environment than when they last gathered in
The finance and central bank chiefs also acknowledged the risks in the
But the statement added that the long-term fundamentals of the
The statement also urged oil exporters to increase production amid worldwide concerns about rising oil prices.
Touching on the Chinese economy, the statement urged
Finance Minister Fukushiro Nukaga, who chaired the meeting with Bank of
"I think that G7 member countries shared the same views and presented to the world an important message for global financial market stability."
"We will continue to closely watch developments and take necessary actions, individually and collectively, in order to secure stability and growth in our economies."
Although the G7 statement did not list specific measures, the response was within range of market watchers' expectations.
Earlier, the G7 had dashed any hopes of concerted international action, such as coordinated interest rate cuts and fiscal stimulus packages, because economic and fiscal conditions differ from country to country.
Ahead of Saturday's meeting, member countries, including
"Each country needs to take a step, and it is important to push that move based on its own economic and fiscal situation," Nukaga said at the news conference, exposing the limits of concerted action.
Before the G-7 session, Finance Minister Fukushiro Nukaga and U.S. Treasury Secretary Henry Paulson agreed in a morning meeting to work closely on stabilizing the global economy, the Finance Ministry said.
Finance leaders from
The G-7 meeting came as the spreading fallout from the
The International Monetary Fund last month cut its 2008 forecast for global economic growth to 4.1 percent from its previous forecast of 4.4 in October, as the credit crisis continues to weigh on the global economy. In 2007, the global economy grew a preliminary 4.9 percent.
He also urged financial institutions to disclose more information about their losses.
The meeting also follows moves by the European Central Bank to soften its inflation-fighting stance amid growing uncertainty and risk regarding the EU economy.
Take action: Paulson The Associated Press U.S. Treasury Secretary Henry Paulson urged the world's wealthiest nations Saturday to respond "resolutely and proactively" to the instability shaking global markets but warned that the volatility would take time to resolve.
Paulson, in a statement after a meeting of the Group of Seven finance chiefs, also expressed confidence in the long-term health of the
By KANAKO TAKAHARA and SHINICHI TERADA