September 21, 2009

Rudd calls for new economic balance

Australian Prime Minister Kevin Rudd said Group of 20 nations should set a path for economic growth that balances developed and emerging economies.

The G20 nations should seek a new, sustainable growth model for the future, that helps correct massive financial imbalances, between export-based, manufacturing nations, like China, and import-based, consumer-oriented economies like the United States, Rudd said.

Otherwise we may be looking at the prospect of flat global growth for a while to come, Rudd said in an interview, CNN reported Monday.

How do we craft a long-term economic growth strategy which is sustainable for the world, no longer dependent on these massive financial imbalances -- huge debt-ridden consumption on the one hand and surplus economies on the other? Rudd said.

G20 nations faced two key problems, he said. The first is to figure out how to unwind up to $5 trillion in extraordinary measures taken by governments to prevent a collapse of the global economy. The second was to find a path for sustainable growth going forward.