World economic growth to be robust in 2005, says G8

The world richest countries expressed optimism that the world economic growth in 2005 would continue to be robust following an strong growth in 2004, according to a statement by G8 finance ministers on Saturday in London.

G8 finance ministers gathered in London from 10 to 11 to prepare the annual Summit of the group said in the statement that "growth is expected to remain robust, although at a more moderate pace, in 2005."

But the finance ministers also recognized that challenges remain, with "especially persistent global imbalances and high and volatile oil prices as well as a more balanced distribution of the benefits of globalization".

They said each country is requited to support a smooth adjustment to more balanced growth to meet the challenges.

To this end, they agreed key priorities should be focused on a continued fiscal consolidation in the United States, further structural reforms in Europe and Russia as well as further structural reforms, including fiscal consolidation, in Japan.

On checking the sustained high oil prices, the ministers said they "welcome efforts to reduce market volatility by improving data to make it more transparent and timely".

They called on relevant international institutions to develop a global framework for reporting of oil reserves, which is essential for better informed market decisions.

They also urged the oil producing countries and companies and consumers to recognize their common interest in ensuring investment in sufficient future supplies of oil and refining capacity.

The statement said they had productive discussions with their colleagues from key emerging economies on a range of global economic issues. The G8 finance ministers also stressed that with a view to concluding the Doha Development Round by the end of 2006, an ambitious result at a WTO Ministerial meeting to be held in Hong Kong is crucial for global growth.

Source: Xinhua