Ministers see prospects for continued expansion, but express concern at impact of oil price rise
| Pages | 328-329 |
Page 328
Following are edited excerpts of the statement issued by the Group of Seven finance ministers and central bank governors on September 23 in Prague.
We met today with the Managing Director of the IMF to review recent developments in the world economy and, with the IMF Managing Director and the President of the World Bank, discussed reform of the international financial institutions. We also discussed implementation issues of the enhanced HIPC [Heavily Indebted Poor Countries] Initiative and abuse of the global financial system.
Prospects for continued expansion in industrial countries and the world economy more generally have further improved in recent months as underlying fundamentals have strengthened. A more balanced and therefore more sustainable pattern of growth among our economies is emerging. Continued vigilance, however, remains important, and we reaffirmed our commitment to macroeconomic and structural policies directed at improving conditions for strong and sustainable growth in each of our economies.
We are concerned about the adverse effects on the world economy of the recent sharp increase in the world oil price. It is important that world oil prices return to a level consistent with lasting global economic prosperity and stability for both oil producing and oil consuming countries and, in particular, for the poor developing countries. In light of continuing high prices and low levels of stocks, it is crucial for the world economy that OPEC [Organization of Petroleum Exporting Countries] and other oil producing countries take actions to contribute to a reduction in oil prices and greater stability in oil markets. Improved efficiency in the use of energy in all economies would contribute to that objective. We welcome the U.S. action to release a limited quantity of its oil reserves in the form of swap transactions. We agreed to remain in close contact and to continue our discussions with oil producing and oil consuming countries as we evaluate measures appropriate to the evolving situation in oil and product markets.
We discussed developments in our exchange and financial markets. We have a shared interest in a strong and stable international monetary...
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