Search the Internet          Tips  Sites: Finance, Investment

G7 sees US economic recovery delayed by attacks

The September 11 attacks on the United States will delay a rebound in the world's top economy, leading finance ministers agreed on Tuesday as they vowed to tighten financial clamps on groups funding violence.

"For the US economy, we reported that the events of September 11 will delay the recovery that was underway," said a joint statement from the Group of Seven finance ministers issued at the US Treasury.

"However, our economic policies and fundamentals remain strong and we expect a near-term return to sustained economic growth and stable financial markets," the ministers said in a release issued following a morning conference call.

The statement said G7 finance ministers would meet "early in October" to discuss global economic prospects amid growing fears of a global recession. Earlier, Japan's Finance Minister Masajuro Shiokawa said the meeting would take place October 6 in Washington, although the ministry of finance later said specific details were not discussed.

The G7 consists of the United States, Britain, Canada, France, Germany, Italy and Japan.

The statement said G7 members pledged to pursue "a comprehensive strategy to disrupt terrorist funding around the world."

Close to 7,000 people are dead or missing after hijackers smashed airplanes into the World Trade Center in New York and the Pentagon, near Washington, two weeks ago.

On Monday, President Bush announced a sweeping series of steps to freeze and seize the assets of militant groups around the world as it pressed a war against international terrorism.

The finance ministers' meeting next month will take place under the shadow of heightened uncertainty about global economic prospects after the attacks. The US economy already is widely considered to be in a recession, with the potential for it to affect other regions because of the American economy's importance as a market for others.

"We will meet in the United States in early October to review economic developments and ensure that no stone goes unturned in our mutual efforts to wage a successful global campaign against the financing of terrorism," the G7 finance ministers said.

On Monday, the Treasury Department confirmed that the usual fall G7 meeting that was to have taken place late in September in conjunction with the World Bank and International Monetary Fund meetings was instead postponed. Amid heightened concerns about security, officials have been exceptionally reluctant to release any details of meeting and travel plans.

YOU MAY ALSO WANT TO READ:
The Attack on US Cities: Complete Coverage

Tell us what you think of this report