Sunday, April 17 2005 14:42 Hrs (IST) - World Time -

Washington: Terming the high oil prices as a "headwind," the world's seven economic powers have stressed the need for "vigorous action" to address global imbalances and foster growth.

"Higher oil prices are a headwind" and the global economic expansion "is less balanced than before," the Group of Seven (G-7) Finance Ministers and Central Bank Governors, who met in Washington yesterday (Apr 16, 2005), said in a joint statement.

"Vigorous action is needed to address global imbalances and foster growth, fiscal consolidation in the United States, further structural reforms in Europe, and further structural reforms, including fiscal consolidation in Japan," they said.

Calling on producers to increase energy supplies, the G-7 nations, comprising the US, Britain, France, Germany, Italy, Japan and Canada, said that the countries should conserve more.

They also endorsed more timely and accurate information about the oil market and expressed their resolve to deal with the energy situation.

On China, US Treasury Secretary John Snow claimed that with the groundwork in place, the Communist nation "is ready now to adopt a more flexible exchange rate."

"China's strong economic growth," said Snow, "has made a tremendous contribution to the global economy."

"China has taken numerous steps over the last few years, including preparing for greater flexibility in their exchange rate, introducing foreign exchange market financial products and strengthening banks and bank supervision," he said.