G-7 expects global economy to see growth despite risks

Finance officials from the world’s wealthiest countries expressed confidence Friday that the global economy would experience strong growth 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 presidents said in a joint statement.

The officials from the world’s seven leading industrial countries -- the U.S., Japan, Germany, Britain, France, Italy and Canada -- projected confidence that various troubles such as soaring trade deficits, jittery financial markets and a slumping housing market in the United States would not be enough to derail growth.

The G-7 finance officials pledged to resist growing protectionist pressures in their countries, a movement spawned by soaring trade imbalances such as the fifth consecutive year of a record trade gap in the U.S..

They pledged to make reforms in their economies to reduce the yawning trade gaps and called on China to introduce flexibility into its currency system, which American manufacturers believe is necessary to curb China’s huge trade surpluses.

“We remain aware of the risks to the world economy,” U.S. Treasury Secretary Henry M. Paulson Jr. said to reporters after the meetings. “Fuel prices remain high and volatile. Protectionist pressures are rising. Global financial markets are vulnerable to reversals, as we saw earlier this year.”