Johannesburg - Finance ministers and central banks chiefs from the G20 grouping of largest economies meeting near Cape Town expressed "deep concern" over the effect of climate change on global food prices and forecast a modest slowdown in global economic growth. Briefing media at the end of the two-day annual meeting, held in the town of Kleinmond, Western Cape province, South Africa's Finance Minister Trevor Manuel put the worldwide surge in grain prices mainly down to climate change.
"There are concerns... about the very significant changes in energy and food prices. This is a global concern... and it is having a profound impact," Manuel said.
Climate change, and the growing interest in farmers in producing crops for biofuels instead of food, were driving increases in the price of corn and wheat, which fed into the cost of food production, Manuel said.
"This is one of the areas we are expressing deep concern about," he said.
The G20 comprises the Group of Seven wealthiest nations (Britain, Canada, France, Germany, Italy, Japan and the United States), the European Union and 12 other leading economies: India, Brazil, China, Russia, South Africa, Saudi Arabia, South Korea, Australia, Argentina, Turkey, Indonesia and Mexico.
Formed in Germany eight years ago it aims to promote dialogue between finance ministers and central bank governors of leading economies on policies that promote "high and sustainable growth."
This year's conference predicted a "likely" modest slowdown in global growth.
The dramatic depreciation of the US dollar and skyrocketing oil and commodity prices are among the contributors to what Manuel termed "a fair amount of uncertainty" in global markets.
The US dollar is trading at its lowest levels against the Canadian dollar in over a century at 97 cents to the dollar.
"Monetary authorities in G-20 countries will need to assess carefully the inflation outlook in light of both tight conditions in commodity markets and the downside risks to growth," the G20 said in a communique issued at the end of the conference.
Calls for the reform of the International Monetary Fund and the World Bank also featured in this this year's summit, held under the theme "Sharing - Influence, Responsibility, Knowledge."
South African President Thabo Mbeki called for substantial reform of the IMF and World Bank to give low-income countries a greater say in their governance and to help "accelerate the process of the eradication of global poverty."
