G8 says rising oil risk to strong world economy
High oil prices may damage the global economy more in the future than they have done so far, though global economic growth is strong at the moment, says a communique to be issued by G8 countries this weekend.
The communique, a draft of which was seen by Reuters, says global economic growth is increasingly broad-based, but that high and volatile oil prices, plus widening global imbalances, remain a threat that must be tackled.
The text, which is due be signed off in St. Petersburg on Saturday by finance ministers from the United States, Canada, Japan, Germany, France, Italy, Britain and host country Russia, says addressing these risks is a shared responsibility.
The G8 finance ministers, meeting to prepare a summit that Russian President Vladimir Putin hosts in mid-July, calls for an ambitious trade liberalisation accord in the stalled Doha Round of negotiations and says urgent progress is needed.
On imbalances - jargon for issues such as a huge US trade deficit, Asian surpluses and heavily regulated European markets - the statement repeats a commitment that countries made in Washington in April to address the problems.
Energy security is likely to dominate the meeting on Friday evening and Saturday.
The text calls for concerted action by energy producing and importing countries to promote investment, greater market transparency, diversification of supply sources and strengthened cooperation on energy security.
It asks the International Energy Agency to work with the big energy consumers of the developing world on managing challenges in energy policy and calls on the World Bank and IMF to develop policy guidelines for both consumer and producer states.
It also says ministers welcome the emergence of new donor countries that play an increasingly important role in funding poor countries and urges them to improve coordination with existing donors and to adhere to guidelines on such aid.
The draft also says G8 countries confirm their determination to fight money laundering and financing for terrorism and that they are committed to bolstering their systems for ensuring the freezing of assets when needed.