After a meeting of the G-7 finance ministers and central bank governors in Tokyo over the weekend, they released a statement indicating they expect slower growth in the year ahead.

“In all our economies, to varying degrees, growth is expected to slow somewhat in the short-term, reflecting wider global economic and financial developments,” it said, adding that downside risks persist, “which include further deterioration of the U.S. residential housing markets; tighter credit conditions from prolonged difficulties in the financial markets; high oil and commodity prices; and heightened inflation expectations in some countries.”

The group said that they are working together to strengthen financial stability, limit the impact of the financial turmoil and address the factors that contributed to it.

“Authorities should encourage market-led improvements in transparency and disclosure practices in this area, and, where needed, provide clear and consistent guidance,” they said. To that end, they welcomed the interim report from the Financial Stability Forum analyzing the underlying causes of the recent turbulence and possible policy directions. “We will act expeditiously on its recommendations,” they said.

The ministers and governors encouraged an accelerated appreciation of China’s effective exchange rate. They also called on OPEC and other oil-producing countries to raise production, and reiterate the need to enhance refinery capacity and improve energy efficiency. And, they asked the IMF to conduct further research on the real and financial factors behind the recent surge in oil prices, and its effects on the global economy.

The group also said a successful conclusion of the Doha Development Round will substantially lower tariffs and other barriers to trade, including in the financial and other services sectors. And, they encouraged the OECD to identify investment policy best practices for countries that receive cross-border investment from sovereign wealth funds.

They discussed IMF reforms, and reaffirmed support for the recent IMF surveillance decision on exchange rate, financial sector, fiscal and monetary policy. They also support the recent proposal by the IMF’s managing director to re-focus its operations on core priorities and to cut spending by US$100 million over three years.

Finally, the ministers discussed the importance of the unified action to address global climate change. “We will seek to enhance the critical roles played by international financial institutions and the private sector in reducing greenhouse gas emissions,” they said.