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7 Rich Industrial Countries Pledge to Fight Global Economic Slowdown
Finance officials from the seven industrialized promised here Saturday to pursue appropriate policies in each of their countries that will lead to stronger economic growth.
In a joint statement issued following the meeting, the finance ministers and central bankers from the Group of Seven countries -- the United States, Japan, Germany, France, Britain, Italy and Canada -- said they will remain vigilant and forward-looking in their efforts to fight the current global slowdown.
Long-term U.S. economic fundamentals remained sound despite a slowdown, and currencies should reflect fundamentals, they noted.
The officials said that Europe should bolster growth by implementing structural reforms but made no mention of the European Central Bank's interests rate policy.
On Japan, the ministers said the Bank of Japan should provide enough liquidity to prevent deflation.
U.S. Treasury Secretary Paul O'Neill, calling the talks "candid and productive," said he told the group that U.S. officials believe a sound foundation has been laid for renewed growth in the United States.
"We all agreed that growth in our economies is crucial to global prosperity," O'Neill told reporters after the nearly six hours of discussions ended. "I emphasized to my colleagues my belief that in the United States, the foundations for economic expansion are sound."
The finance officials endorsed O'Neill's assessment, saying that while U.S. growth has slowed sharply, the country's long-term economic fundamentals "remain strong."
The statement urged the U.S. Federal Reserve, which has already cut interest rates four times this year to make sure the country doesn't slide into a recession, to keep pursuing policies that will contribute to sustained growth with stable inflation.
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