G-8 Warns Rising Commodity Prices Pose Risk to Global Economy
Leaders from the Group of Eight countries said the rising cost of crude oil and food is posing risks to the global economy, and they called on energy-exporting nations to invest more in production.
The world economy is facing “uncertainty'' and “downside risks persist,'' the group said in a statement issued today in Toyako, Japan, where the leaders are holding their annual summit. They pledged to take “appropriate actions'' to ensure stability.
“We express our strong concern about elevated commodity prices, especially of oil and food, since they pose a serious challenge to stable growth worldwide, have serious implications for the most vulnerable, and increase global inflationary pressure,'' according to the document posted on the Japanese Foreign Ministry's Web site pay day loan.
The state of the world's economy has taken on more urgent importance for the G-8 leaders as the doubling of oil prices and financial turmoil since their last meeting fan concerns about inflation and slow growth. All of the major G-8 stock indexes have fallen in the month leading to this week's meeting.
The G-8 proposed holding a forum to focus on energy efficiency and new technologies, which could contribute to dialogue between producers and consumers.
The leaders said some countries with growing current account surpluses needed to allow their currencies to adjust. No reference to the U.S. dollar or other currencies was made in the statement.
Filed under: technology by Finance Boss