IMF Chief Urges Meeting of G-7 Nations To Discuss Weakening World Economy
BRUSSELS -- The world's seven major industrialized countries should meet soon to discuss "the present deterioration of the world economy" and the unusual disparity between U.S. and German interest rates, according to the head of the International Monetary Fund.</br></br>Economic growth is slowing, and "the world economy is at a turning point," Michel Camdessus, the IMF's managing director, said. He stressed the need for more discussion between the finance ministers and central bankers of the Group of Seven industrialized countries: the U.S., Japan, Germany, France, Britain, Italy and Canada.</br></br>Mr. Camdessus also urged trade ministers to reach a successful conclusion to their four-year trade talks, which are in their final week here. He said failure of the talks would be "extremely damaging" to IMF efforts to devise economic-reform programs in many countries, and would hurt both the industrialized and developing worlds.</br></br>In recent weeks, the French finance minister, Pierre Beregovoy, twice has sought U.S. support for a Group of Seven meeting. The U.S. Treasury so far hasn't publicly responded to these requests, although some U.S. officials point out that a G-7 gathering generally is held early each year -- in January or February.</br></br>"I'd be surprised if we didn't have {a G-7 meeting} soon," said Charles Dallara, the assistant U.S. treasury secretary for international affairs.