IMF, World Bank chiefs urge focus on fair growth
Associated Press
Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.![ext]()
Updated 8:42 p.m., Thursday, October 11, 2012
TOKYO (AP) — Sacrificing growth for the sake of austerity could put the entire world economy in jeopardy, the head of the International Monetary Fund told global financial leaders Friday, calling for medium-term work to bring down debt levels and urgent action to get the unemployed back to work. On Friday, the fund said economic growth in the Asia-Pacific region slowed to 5.5 percent in January-June — well above the global average, but the lowest for the region since the financial crisis in 2008 — largely because of sluggishness in Europe and the U.S. It also noted weakness in China and India, whose dynamism had helped counter weakness elsewhere. Europe's darkening economic outlook is drawing calls for more public support even from austerity champion Chancellor Angela Merkel, who said Thursday it was incumbent on Germany, whose 0.3 percent growth in the second quarter helped offset a 0.2 percent contraction in the 17-nation eurozone, to "do things to stimulate the European economy." Finance ministers and central bankers from the Group of Seven richest nations met Thursday to discuss the European debt crisis and the looming budget impasse in the U.S. Local reports said Japan sought support for its own woes with the stubborn appreciation of the Japanese yen, which by making its exports more expensive in overseas market is hindering its own recovery. The leaders released no communique, though Japan's Ministry of Finance announced that the group had supported moves to resolve debts and move ahead on new financing for Myanmar as it carries out sweeping economic reforms. U.S. Treasury Secretary Timothy Geithner sought to strike a reassuring tone regarding the threat of the so-called "fiscal cliff" of tax increases and deep spending cuts that will take effect in 2013 unless Congress and the Obama administration resolve a budget impasse. Reported by SeattlePI.com 2 hours ago.
Associated Press
Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Updated 8:42 p.m., Thursday, October 11, 2012
TOKYO (AP) — Sacrificing growth for the sake of austerity could put the entire world economy in jeopardy, the head of the International Monetary Fund told global financial leaders Friday, calling for medium-term work to bring down debt levels and urgent action to get the unemployed back to work. On Friday, the fund said economic growth in the Asia-Pacific region slowed to 5.5 percent in January-June — well above the global average, but the lowest for the region since the financial crisis in 2008 — largely because of sluggishness in Europe and the U.S. It also noted weakness in China and India, whose dynamism had helped counter weakness elsewhere. Europe's darkening economic outlook is drawing calls for more public support even from austerity champion Chancellor Angela Merkel, who said Thursday it was incumbent on Germany, whose 0.3 percent growth in the second quarter helped offset a 0.2 percent contraction in the 17-nation eurozone, to "do things to stimulate the European economy." Finance ministers and central bankers from the Group of Seven richest nations met Thursday to discuss the European debt crisis and the looming budget impasse in the U.S. Local reports said Japan sought support for its own woes with the stubborn appreciation of the Japanese yen, which by making its exports more expensive in overseas market is hindering its own recovery. The leaders released no communique, though Japan's Ministry of Finance announced that the group had supported moves to resolve debts and move ahead on new financing for Myanmar as it carries out sweeping economic reforms. U.S. Treasury Secretary Timothy Geithner sought to strike a reassuring tone regarding the threat of the so-called "fiscal cliff" of tax increases and deep spending cuts that will take effect in 2013 unless Congress and the Obama administration resolve a budget impasse. Reported by SeattlePI.com 2 hours ago.