global economy credit crunch

The global economy could deteriorate further in the wake of the global credit crunch, a meeting of the G7 group of wealthy nations has warned.But the group pledged to act individually and together to promote stability and growth.

It also urged banks to disclose all their losses and bolster their balance sheets to help stabilise markets.

The group’s statement came after a day-long meeting of ministers and central bank governors in Tokyo.

“In all our economies, to varying degrees, growth is expected to slow somewhat in the short term,” it said