Canada Says to Focus on Debt Relief, Energy Risk
Date: 03-Feb-05
Country: CANADA
Author: Cameron French
The official also said that ministers would be unlikely to stray far from the language used at a meeting last year in Boca Raton, Florida, when they called for more stable foreign exchange rates and for a floating Chinese currency.
The G7 is made up of Canada, Britain, France, Germany, Italy, Japan and the United States. Finance ministers meet four times annually.
In terms of Canada's outlook, Finance Minister Ralph Goodale will relay a more pessimistic view than his most recent economic and fiscal update in November, largely due to the impact of the strong Canadian dollar and high energy prices.
Officials said he will tell his G7 counterparts that Canada's economy will grow about 2.8 percent in 2005, down from the previous forecast of 3.2 percent, and in line with last week's Bank of Canada estimate.
The Canadian dollar's surge from 62 US cents in early 2002 to 85 US cents late last year has begun to drag on Canadian growth, as shown in recent economic data.
Canadian officials said the G7 will discuss a generally positive outlook for global economic growth, but that high oil prices -- which were around $47 a barrel on Wednesday -- constitute a risk to that.
The meeting will also touch on development issues, with a focus on third-world debt relief and assistance for countries hit by the tsunami in Southeast Asia.
Earlier on Wednesday, Goodale proposed a debt-easing plan for the world's poorest countries that would see an increase in the amount of relief available and the number of countries eligible for international assistance.
The finance minister said in a statement the proposal would effectively pay 100 percent of debt-servicing payments coming due between now and 2015.