G7 ministers discuss stagnant economy

Finance ministers from the world's wealthiest nations meet in Paris today to discuss the stagnant global economy.

Finance ministers from the world's wealthiest nations meet in Paris today to discuss the stagnant global economy.

French finance minister Mr Francis Mer said the economies of Europe, the United States and Japan, were struggling but not in dire condition and that the G7 talks would focus on what governments could do to boost morale in business and in financial markets.

The G7 envoys would try to weigh up the economic damage that could be caused if world oil prices surged as a result of war, Mr Mer said.

He also said ministers would be keen to hear from the central bank chiefs that there was room for further interest rate cuts if necessary to lower borrowing costs for businesses and inject a bit of life into the economy.

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Stock markets across the globe have fallen for three years in a row, a level of decline unseen since just after World War Two. A fall on a significant scale this year would make it the worst market slide since the Great Depression.

Economic growth is faltering across the G7 bloc, which accounts for about half of the world economy. The OECD think-tank sees world growth of only a little more than 2 per cent in 2003.