Japanese PM warns of economy risk

Japanese Prime Minister Yasuo Fukuda has warned of growing risks to the world economy in a speech at the World Economic Forum in Davos, Switzerland.

He said there was no need for excessive pessimism, but that action was needed.

Mr Fukuda said the issue would be discussed at a meeting of the Group of Seven leading industrialised nations in Tokyo next month.

His words come after turbulence in the financial markets sparked by fears the US could be headed towards recession.

"Downside risks on the world economy are on the rise against a backdrop of US subprime issues and a record rise of oil prices," he told business leaders and economists attending the annual conference.

"There is no need for excessive pessimism. At the same time however, we should respond quickly and should implement necessary measures," he added.


http://news.bbc.co.uk/2/hi/asia-pacific/7210696.stm