BARI, Italy, May 12 (Reuters) - Japanese Finance Minister Taro Aso said on Friday that the world economy was improving and the outlook was brightening, but that there was no room for complacency because of uncertainty over U.S. economic policies.
Speaking to reporters after the first day of Group of Seven financial leaders' meeting, Aso said he told his counterparts about problems with China's excessive credit and asked the International Monetary Fund to monitor its capital controls.
On the issue of inequality, Aso said he told G7 that countries must not backpedal on free trade, which he said has contributed to economic prosperity.
"We must not backpedal on free trade as it has contributed to economic prosperity," Aso told reporters. (Reporting By Tetsushi Kajimoto)