We, Finance Ministers and Central Bank Governors of the G-7 countries, met today to discuss issues facing the world economy. The world confronts a more challenging and uncertain environment than when we met in last October, though its fundamentals as a whole remain solid. In the United States, output and employment growth have slowed considerably and risks have become more skewed to the downside, but long-term fundamentals remain sound and we expect growth to continue in 2008. In all our economies, to varying degrees, growth is expected to slow somewhat in the short-term, reflecting wider global economic and financial developments. Emerging market economies (EMEs) are forecast to continue robust, if slower, growth.
The world's seven biggest manufacturing economies decided and determined to work together to handle this crisis, and to stimulate growth levels by making a huge effort to build a strong financial relationship that amortize liquidity all over the world, and creating the right markets for production amongst the all countries, more spending, more production, more growth, but not in one country, the plan is for the seven to work together.
Markets found the communiquÃƒÂ© in a way or another very general, yes it does address the issues of main concern nowadays, and it does suggest some proper solutions, but there is no actual work plan that has been set to handle the details.
This upcoming week will not carry with it like some very huge fundamentals, at least not from the United States, but it sure does for the Japanese economy, where an interest rate decision will be made, and some good fundamentals will set the path for the most confusing currency in the Forex market if I might say, so let us wait and see.