World economy is gaining strength, but commodity prices big hurdle: G8

The Group of Eight (G8)) leaders agreed on Friday that the global economy recovery was becoming more "self-sustained", although higher commodity prices were hampering further growth.

The Group of Eight (G8)) leaders agreed on Friday that the global economy recovery was becoming more "self-sustained", although higher commodity prices were hampering further growth.

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In a communique to be issued at the end of a two-day summit in France, a copy of which was obtained by Reuters, European nations, the US and Japan all agreed to ensure their public finances were sustainable.

"The global recovery is gaining strength and is becoming more self-sustained. However, downside risks remain, and internal and external imbalances are still a concern. The sharp increase in commodity prices and their excessive volatility pose a significant headwind to the recovery.

In this context, we agreed to remain focused on the action required to enhance the sustainability of public finances, to strengthen the recovery and foster employment, to reduce risks and ensure strong, sustainable and balanced growth, including through structural reforms," the communique said.