Seven of the world's wealthiest nations said on Saturday they will act together or individually to calm markets in the wake of a global economic downturn, but stopped short of prescribing specific measures.
Finance ministers from the G7 group, meeting for one day of talks in Tokyo, said the fundamentals of the world economy remained "solid" and that the U.S. economy was likely to escape a recession this year.
However, they also listed several factors that are fuelling concerns.
"We note that downside risks still persist, which include further deterioration of the U.S. residential housing markets; tighter credit conditions from prolonged difficulties in the financial markets; high oil and commodity prices; and heightened inflation expectations in some countries," a G7 communiqué said.
No single remedy was recommended to bolster the global economy.
"Each of us has taken actions, appropriate to our domestic circumstances, in the areas of liquidity provision, monetary policy and fiscal policy," the statement said.
Japanese Finance Minister Fukushiro Nukaga, who hosted the gathering at a Tokyo hall, said the economic conditions in each nation were so different that a single remedy was not feasible.
FULL STORY
The G7 leaders say growth will slow in world economies in the short term given the slumping U.S. economy. What are you doing, if anything, to prepare for an economic slowdown in Canada? How do you think Canada will be affected by U.S. economic problems?
More...
Finance ministers from the G7 group, meeting for one day of talks in Tokyo, said the fundamentals of the world economy remained "solid" and that the U.S. economy was likely to escape a recession this year.
However, they also listed several factors that are fuelling concerns.
"We note that downside risks still persist, which include further deterioration of the U.S. residential housing markets; tighter credit conditions from prolonged difficulties in the financial markets; high oil and commodity prices; and heightened inflation expectations in some countries," a G7 communiqué said.
No single remedy was recommended to bolster the global economy.
"Each of us has taken actions, appropriate to our domestic circumstances, in the areas of liquidity provision, monetary policy and fiscal policy," the statement said.
Japanese Finance Minister Fukushiro Nukaga, who hosted the gathering at a Tokyo hall, said the economic conditions in each nation were so different that a single remedy was not feasible.
FULL STORY
The G7 leaders say growth will slow in world economies in the short term given the slumping U.S. economy. What are you doing, if anything, to prepare for an economic slowdown in Canada? How do you think Canada will be affected by U.S. economic problems?
More...