Summers cautions on modest US recovery
Monday 01 February 2010
A clear warning about the true health of the US economy and the state of US-Chinese economic relations has been issued by Larry Summers, President Obama's leading economic adviser.
Speaking at the World Economic Forum in Davos, Mr Summers was cautious on last week's apparently strong US growth figures. "What we are seeing is a statistical recovery and a human recession," he said. "My judgment ... will be that GDP growth will continue at a moderate rate at least for the next several quarters. What is disturbing is the level of unemployment. This is not just a cyclical phenomenon but also a structural phenomenon."
A key issue in addressing what some are calling the "jobless recovery" in the West would be to fix the imbalance between the great creditor and debtor nations – chiefly the US-China trade relationship. Mr Summers – sharing a panel with the deputy governor of China's central Bank, Zhu Min – said: "Not everyone can have export-led growth. Countries that traditionally have export-led growth desire to continue the growth; countries that have been substantial borrowers want to reduce that borrowing. There's a mismatch; it's serious."
Mr Zhu replied: "We want to increase consumption but it will take some time. We need global coordination on structural change ... for us to increase consumption and for others to increase consumption or to increase savings."
peopleContenders for Time magazine's Person of the Year are a mixture of the good, the bad and the holy
tvSteven Moffat reveals the actor was dying to take on the role of the Time Lord and says he is excited to see what he will do with the character
sportBayern Munich 2 Manchester City 3: City come from two down to beat reigning European Champions
newsAs the world remembers Mandela the hero, the prison where he spent 27 years seems all the more brutal
arts + ents... and a chance to paint Booker Prize winning author Hilary Mantel
danceUnder Tamara Rojo's inspired direction, it seems possible that it could challenge the dominance of the Royal Ballet. We meet some established names and rising stars
travelDiscover Uruguay's jet-set beach resort, an Atlantic enclave with plenty of art and culture to explore on the side
The ten coldest places on Earth
Sir Ian McKellen hits back at Damian Lewis' 'fruity actor' claims
Kenyan politician Mike Sonko left red-faced after photoshopping himself next to Nelson Mandela
Krokodil in Mexico? Teenager hospitalised after 'injecting drug into her genitals'
Nelson Mandela memorial: Cheers, jeers and a masterclass from Barack Obama that stole the show
- 1 It’s shameful that our universities have accepted gender segregation under pressure from the most oppressive religious fanatics
- 2 Sir Ian McKellen hits back at Damian Lewis' 'fruity actor' claims
- 3 Kenyan politician Mike Sonko left red-faced after photoshopping himself next to Nelson Mandela
- 4 Selfie at funeral: Cameron squeezes in on Obama snap at Mandela memorial
- 5 Is Facebook making us forget? Study shows that taking pictures ruin memories
- < Previous
- Next >
iJobs Money & Business
£45000 - £70000 per annum + Bonus + Benefits: Harrington Starr: Technical Impl...
£65000 - £90000 per annum + Bonus + Benefits: Harrington Starr: Rogue Trading ...
£35000 - £45000 per annum + BONUS + BENEFITS: Harrington Starr: A leading, Cit...
£40000 - £50000 per annum + benefits + bonus: Harrington Starr: Data Analyst -...