Group of Eight leaders said world economic prospects remained weak even though downside risks have lessened due partly to policy action taken in the United States, the euro zone and Japan.
In a statement issued after their discussion on the global economy, the leaders also said Japan needed to address the challenge of defining a credible medium-term fiscal plan.
"Downside risks in the euro area have abated over the past year, but it remains in recession," they said. "The U.S. recovery is continuing and the deficit is declining rapidly in the context of a continuing need for further progress towards balanced medium-term fiscal sustainability and targeted investments to enhance growth."
They added that fiscal policy should allow for near-term flexibility to accommodate various economic conditions. "The pace of fiscal consolidation should be differentiated for our different national economic circumstances," they said.
© 2014 Thomson/Reuters. All rights reserved.