Asia-Europe leaders warn on global economy

(VIENTIANE) - Asian and European leaders warned Tuesday of "substantial" uncertainties facing the global economy and pledged to work together to strengthen economic ties.

They also voiced hope at an Asia-Europe Meeting (ASEM) in Laos that the debt-laden European economy would "gradually recover" from its current slump, according to a closing statement.

"Leaders emphasised that strong and sustained economic growth in ASEM partners would contribute to the long-term strong, sustainable and balanced growth of the world economy," it said.

"They noted that the global growth has decelerated with substantial remaining uncertainties and downside risks for ASEM partners. They expected that the European economy will gradually recover and welcomed actions taken by the European Union and its member states to address the situation."

Dozens of leaders converged on small landlocked Laos for two days of talks, seeking to strengthen trade links between two regions that together account for about half of global economic output.

"They underlined the need for Asia and Europe to promote a closer engagement toward (a) stronger and more dynamic partnership in addressing the current global crisis as well as paving the road in creating a stronger, more sustainable and balanced global growth," the statement added.