The world's leading industrial countries are enjoying strong growth but face the risk of rising inflationary expectations, tight energy markets and spreading protectionism, a draft communique of the Group of Seven rich nations says.

The statement, to be released later on Saturday after talks in Singapore among G7 finance ministers and central bank governors, makes a thinly veiled call for Asia to let its currencies rise faster to help reduce global economic imbalances.

We reaffirm our strong commitment to pursuing sound policies, and call on others to join us to meet the shared responsibility for orderly adjustment of global imbalances, the text, obtained by Reuters, said.

The draft did not contain a section on exchange rates, which officials said was still being finalized.

But a G7 source said the communique would broadly repeat language used by the group after its meeting on April 21, when it called for China in particular to permit more currency flexibility.

China Inflation Energy