Crisis unprecedented in modern times: Geithner

April 22, 2009

22 April 2009

Crisis unprecedented in modern times: Geithner

The following is excerpted from today's edition of “globeandmail.com”.

[US] Treasury Secretary Timothy Geithner said Wednesday the United States bears a substantial share of responsibility for a global economic crisis that could cost the world up to $4-trillion (U.S.) in lost output this year alone….

Mr. Geithner cited the International Monetary Fund's new economic forecast Wednesday that projected global economic output will fall 1.3 per cent this year, the first decline in more than six decades. Compared with a normal global growth rate of 4 per cent, the lost output could total $3-trillion to $4-trillion, he said….

The Group of 20 major industrial countries and developing nations earlier this month pledged to boost the resources of the IMF and other international lending institutions by $1.1-trillion, while supporting sizable stimulus programs of tax cuts and spending increases in their own countries.

Mr. Geithner called the G-20 proposals made in London on April 2 an “unprecedented, cooperative program,” citing estimates that the action could provide a $5-trillion fiscal boost to the global economy through 2010.

Mr. Geithner did not mention any further commitments the U.S. would seek this weekend when finance ministers meet in Washington, but outside analysts say it's unlikely those discussions will produce any further major proposals….

There are tentative signs the severity of the downturn was beginning to moderate. Some measures of consumer spending and industrial output had started to stabilize and financial conditions had improved “modestly,” Mr. Geithner said.

It also was encouraging that the U.S. and other countries had responded with unprecedented speed and force to deal with the crisis, but going forward it will be critical for countries not to relent in their efforts to boost economic growth and stabilize their financial systems, he said.

“The actions now in place and in the pipeline offer the strongest basis for confidence that we will begin to lay the foundation for global recovery,” Mr. Geithner said.


Topic(s): 
World Economy & Politics
Information Source: 
Canadian News Channel / International News Channel
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