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TOYAKO, Japan: Leaders of the Group of Eight powers warned Tuesday
that soaring oil and food prices pose a “serious challenge” to
world economic growth, calling for boosted crude production
capacity.
“The world economy is now facing uncertainty
and downside risks persist,” the G8 said in a joint statement.
“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,” the statement said.
“We are determined to continuously take
appropriate actions, individually and collectively, to ensure
stability and growth in our economies and globally,” they added,
without announcing any concrete measures.
The G8 called for an increase in oil production
and refining capacity to help stem soaring prices, which have soared
five-fold since 2003.
“We have strong concerns about the sharp rise
in oil prices, which poses risks to the global economy,” the
leaders said in the special statement on the global economy issued
during the second day of a three-day summit here.
“On the supply side, production and refining
capacities should be increased in the short term,” they said,
calling for “concerted efforts” to address the underlying causes
of the rise that has seen crude hit more than $140 a barrel, stoking
global inflation.
-- AFP
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