PM Julia Gillard is to focus on the global economy when she addresses the world leaders in Laos. Source: AAP
PRIME Minister Julia Gillard is to focus on the global economy amid a gloomy outlook for international finances when she addresses Asian and European leaders in Laos.
Ms Gillard was scheduled to arrive in Vientiane on Sunday afternoon ahead of two days of talks at the 9th Asia-Europe Meeting (ASEM) on Monday and Tuesday.
It is her first international trip since the release last week of the landmark "Asian Century" white paper.
The prime minister is also expected to speak about the need to continue free-trade talks as well as the Group of 20 (G20) agenda.
However, the overarching theme of Ms Gillard's remarks, to be given during an address at a plenary session on Monday, will focus on the struggling global economy.
Economists have forecast a gloomy period ahead with global growth predicted to be more sluggish than previously expected as the recession in Europe continues.
The International Monetary Fund (IMF) has cut its forecast for world output to 3.3 per cent for 2012, down from 3.5 per cent, while unemployment across the eurozone has risen to a record 11.6 per cent.
The Reserve Bank of Australia (RBA) has also forecast slower growth in Australia.
European leaders attending the Laos talks are expected to provide an update on efforts to address tensions in financial market, to restore confidence and to stimulate growth and jobs.
The reform of international financial institutions and protectionism will also be on the agenda.
The second plenary session on Tuesday is to focus on terrorism, piracy at sea and the proliferation of weapons of mass destruction. Energy security, water resources management and food security will also be discussed.
Ms Gillard was to meet with her Laotian counterpart, Thongsing Thammavong, on Sunday afternoon local time and was expected to also hold bilateral talks with British Foreign Secretary William Hague and French President Francois Hollande over the coming days.
Some media reports have suggested Ms Gillard will also meet with Pakistani Prime Minister Raja Pervez.
Ms Gillard will travel to Indonesia later in the week for the Bali Democracy Forum at which she is expected to hold talks with Indonesian President Susilo Bambang Yudhoyono.
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