May 12, 2017 / 3:10 PM / a year ago

UPDATE 2-G7 officials worried about U.S. policies' impact on global growth

(Adds more detail)

By David Lawder

BARI, Italy, May 12 (Reuters) - G7 finance officials have raised concerns about risks to global growth from the Trump administration’s policy proposals including tax reform, a senior U.S. Treasury official said on Friday.

Finance ministers from the Group of Seven (G7) - the United States, Canada, Japan, France, Germany, Italy and Britain - are holding two days of talks on the global economy, taxation and terrorist financing in the southern Italian city of Bari.

Speaking to reporters on the sidelines of the meeting, the official said the tax plan and U.S. trade policies were part of discussions about risks to the global economy.

“Some countries have flagged risks along those lines as well as risks that U.S. growth and strengthening U.S. growth will lead to more investment, which could have an impact on exchange rates and could have an impact on the Fed’s policy going forward,” the official said.

“That’s in a positive context, but it could have spillovers to the rest of the world, in terms of both positive and negative,” the official said.

The official said that stronger U.S. growth and a stronger dollar could cause some problems for countries with high dollar debts, possibly leading to some capital outflows.

The official said U.S. Treasury Secretary Steven Mnuchin has tried to field questions from many G7 ministers on the process and timing of tax reform, which is still uncertain.

“The goal is to pass it this year,” the official said. (Reporting by David Lawder; Editing by Tom Heneghan)

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