- Shocker: India's economic growth rate for 2012-13 to plunge to 5%, says govtIndia economic growth rate for 2012-13 will slump to 5%: governmentBSE Sensex hits 1-1/2-mth closing low as banks, Cipla shares plunge, NSE Nifty down by 20President Barack Obama to lay out economic growth plan in State of Union speech
Raising concern over recession hit countries ahead of the G-20 meeting in Moscow, US said the focus of the G-20 nations is to ensure growth strategies in the world's largest economies are mutually compatible and that they promote growth globally.
"For us, the central focus of the G-20 is charting a path to shared growth. The surest path to shared growth is through growing and rebalancing demand, which, of course, requires currencies to adjust," US Undersecretary of the Treasury for International Affairs Lael Brainard said.
"To ensure that growth strategies in the world's largest economies are mutually compatible and that they promote growth globally, we're going to make sure we're going to continue to emphasise the commitment to market-determined exchange rates
and to refrain for those countries who are still in transition from any move to competitive devaluation," Brainard told reporters in response to a question.
Brainard, who would represent the US during the G-20 ministerial, said that while tail risks have eased, global growth is weak.
"One-third of the G-20 is in recession. We need to do more to get people back to work. Toronto 2.0 is not the right answer. We must avoid jeopardising the recovery with a premature shift to restraint," she said.
This will be the first G-20 ministers and governors meeting under the Russian presidency.
The G-20 has to do a better job at balancing medium-term fiscal consolidation with the imperative of supporting near-term growth, she said adding that the findings by the International Monetary Fund and OECD of large fiscal multipliers than previously estimated support the need for caution.
Strengthening demand will require greater progress on global re-balancing. In the absence of offsetting demand growth from surplus economies, overall growth will remain weak, she noted.