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Tuesday, 25 September, 2001, 19:51 GMT 20:51 UK
G7 forecasts delay to US revival
New York Stock Exchange
Calm will "in the near term" return to Wall Street markets
The attacks on the US have dashed hopes of an imminent revival in the country's economy, finance chiefs from leading industrial states have warned in a statement pledging action to block terrorist funding.

The repercussions of the terror attacks have delayed a recovery which was already underway, finance ministers from the group of seven nations, or G7, said after a conference call on Tuesday.

But thanks to underlying strength of the US economy, and a favourable policy outlook, a revival can still be expected, the ministers said.

"We expect a near-term return to sustained economic growth and stable financial markets," Tuesday's statement said.

The announcement came minutes after the Conference Board, an influential business group, warned that a slump in consumer confidence risked tipping the US into recession.

Anti-terror clampdown

The ministers also pledged their support to efforts to block the funding of terrorist groups, backing in particular the implementation of United Nations sanctions over the financing of dissidents.

"We will pursue a comprehensive strategy to disrupt terrorist funding around the world," the briefing said.

Since the terror attacks, the G7 nations have shared national plans for blocking terrorists' assets, the statement said.

The nations will meet early next month to review "economic developments", and to ensure that "no stone goes unturned in our mutual efforts to wage a successful global campaign against the financing of terrorism".

The US Treasury later on Tuesday confirmed that the G7 session, postponed after the cancellation of the IMF and World Bank annual meetings scheduled for next week, will be held on 6 October.

The Group of Seven countries comprise the US, France, Germany, Italy, Canada, Japan and Britain.

See also:

25 Sep 01 | Business
Business gurus warn of US recession
25 Sep 01 | Business
UK economic growth revised upwards
25 Sep 01 | Business
IMF shrugs off recession fears
20 Sep 01 | Business
Top US policymakers say 'wait'
19 Sep 01 | Business
Fears grow for US economy
18 Sep 01 | Business
US inflation edges higher
25 Sep 01 | Business
CBI criticises recession talk
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