Communiqué of the Seventy-Fifth Meeting of the Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development (G-24), April 21, 2006, Washington, D.C.

Ministers welcome the continued favorable global economic prospects. They note that the United States and China remain the main engines of global growth, and that growth prospects in Japan and in some members of the euro area have steadily improved. They are encouraged that performance and prospects in many emerging market and other developing countries continue to be strong. Core inflation and inflationary expectations remain subdued, and financial market conditions remain favorable. Nevertheless, Ministers caution that there is no room for complacency, as high levels of poverty persist in many countries, and important risks to the global economic outlook remain, particularly in connection with the continued widening of global imbalances. These imbalances could unwind in a disorderly manner and lead to sharp movements in interest and exchange rates, a further increase in protectionist pressures, and perhaps a global recession. In the short run, the risks relate to a further increase in the level and volatility of oil prices, a sharp decline in housing prices in the United States, and the possibility of an avian flu pandemic.