G-7 financial chiefs to discuss global imbalances, currency+

ISTANBUL, Turkey, Oct. 2 Kyodo -
Finance chiefs from the Group of Seven industrial powers will assemble Saturday
in Turkey for a regular but unusually short gathering to reaffirm their
commitment to resolving global economic imbalances and discuss a range of other
macroeconomic issues such as currency.

In the meeting, which will probably run only for three hours, the G-7 finance
ministers and central bank governors are expected to debate preparations to
withdraw massive stimulus packages at an appropriate timing when the global
economic recovery is ensured.
Echoing the agreements at the recent Group of 20 developed and emerging
countries' summit in Pittsburgh in the United States, the financial leaders are
also likely to pledge anew to do their utmost to nurture the budding signs of
economic recovery to sustainable growth, while confirming they will not rush to
unwind emergency steps soon, Japanese officials said.
The International Monetary Fund said Thursday in its twice-yearly World
Economic Outlook report that it expects global growth to recover to the 3
percent level in 2010 after contracting in 2009 under the weight of the worst
financial crisis in generations.
The IMF put its global economic forecasts at minus 1.1 percent growth for 2009
and plus 3.1 percent for 2010. They compare with the earlier outlooks of a fall
of 1.4 percent and a rise of 2.5 percent, respectively.
Market players are closely watching whether the upcoming G-7 meeting and
comments by participants will provide any fresh clue for the currency market
which has been a bit volatile recently.
But Japanese Finance Minister Hirohisa Fujii said Friday in Tokyo he does not
plan to take up the recent yen's appreciation versus the U.S. dollar at the G-7
talks.
''I will not touch'' on the issue, Fujii told reporters at Narita airport
shortly before leaving for the half-day G-7 meeting.
Given that just only a week has passed since the Pittsburgh summit, the G-7
meeting will not only be brief but may wrap up without issuing a communique,
the officials said.
For Japan, this is the first G-7 meeting since Democratic Party of Japan leader
Yukio Hatoyama took power in mid-September following the party's sweeping
victory in the Aug. 30 election.
Fujii, who will represent Japan along with Bank of Japan Governor Masaaki
Shirakawa, is expected to brief other G-7 member economies about Japan's latest
economic and fiscal policies, which put more emphasis on boosting domestic
demand.
The G-7 gathering will be followed by a series of IMF and World Bank meetings,
including their two-day annual meeting on Tuesday and Wednesday in the Turkish
city.
==Kyodo