In a statement issued over the weekend, the G8 Finance Ministers warned about the risks to global growth coming from high energy prices and global fiscal imbalances.

The G8 Finance Ministers met in Moscow to prepare for the G8 summit in St Petersburg and had discussions on the global economy in the context of energy market developments, further steps for the development agenda, and economic dimensions of fighting infectious diseases worldwide.

“Overall global growth remains solid and this is expected to continue in 2006,” they noted. “Risks remain, including high and volatile energy prices. We agreed that further progress needs to be made in implementing policies that contribute to the gradual resolution of global imbalances and promote sustainable growth of the global economy.”

They also reaffirmed that an ambitious outcome to the Doha Development Round by the end of 2006 is essential to enhancing growth and reducing poverty. They urged all participants to agree on a comprehensive package that achieves significant progress in agriculture, industrial products, services, including financial services, intellectual property, and WTO trade rules.

As for energy policy, they said, “In order to improve the smooth functioning and stability of markets, we agreed to take forward work on enhancing the global energy policy dialogue between oil producing and consuming countries and the private sector.” They also called on the World Bank to work with low-income countries to develop country-specific energy strategies to help them achieve the Millennium Development Goals.

They called for full implementation of commitments made on the Multilateral Debt Relief Initiative, aid effectiveness, and increasing resources for development.

The ministers also acknowledged the risk of a possible avian flu pandemic and its potential economic and financial impacts. They called for financial support to poor countries fighting the epidemic.

They also welcomed progress made in combating money laundering and terrorist financing and commit to continue to pledge support for regional cooperation. And, noted that they welcome Russia’s initiative in promoting research on aspects of good governance in public finance.