Finance officials from the world's seven richest nations said on Friday that the global economy is becoming more balanced and will continue its strong expansion despite risks.

"Although risks remain, the global economy is having its strongest sustained expansion in more than 30 years and is becoming more balanced," the finance ministers and central bank governors said in a joint statement.

"U.S. economic activity remains solid even as domestic demand moderates to a more sustainable growth path," said the statement. "The euro-area is experiencing a healthy upswing, UK growth remains robust and Canadian growth is accelerating."

Meanwhile, Japan's recovery is on track and expected to continue.

"We remain confident that the implications of these developments will be recognized by market participants and will be incorporated in their assessments of risks," said the finance officials.

"We will do more to increase trend economic growth rates, especially through structural reforms such as improving labor markets and long-term fiscal sustainability," they said. "We are confident that the continuation of our policies will support economic growth and contribute to reduce international imbalances."

However, the officials, representing Britain, Canada, France, Germany, Italy, Japan and the United States, also warned the risks that may derail growth.

"We remain aware of risks to the world economy," said U.S. Treasury Secretary Henry Paulson after the meetings. "Fuel prices remain high and volatile. Protectionist pressures are rising."

"We need global demand to be underpinned by strong domestic demand in major economies such as Japan and Europe, and the cyclical upswings need to be translated into lasting improvements in potential growth," he added.

Source: Xinhua