MENU

G-20 fears US sharp fiscal tightening

November 6, 2012 • Business


Bank of Canada governor Mark Carney, participates in a news conference at a meeting of Group of 20 finance ministers and central bank governors in Mexico City, Monday, Nov. 5 2012. Finance officials from the world’s largest economies on Monday called on countries to reject protectionism and currency manipulation despite a raft of economic problems that include the U.S. deficit. (AP Photo/Eduardo Verdugo)

MEXICO CITY (AP) — Finance officials from the world’s largest economies on Monday called on countries to reject protectionism and currency manipulation despite a raft of economic problems that include the U.S. deficit.

Meeting in Mexico City one day before the U.S. elections, the G-20 finance ministers issued a statement saying the United States faces “a potential sharp fiscal tightening.”

“The United States will carefully calibrate the pace of fiscal tightening to ensure that public finances are placed on a sustainable long-run path, while avoiding a sharp fiscal contraction in 2013,” the G-20 said in a statement.

Other delegates at the meeting expressed similar concerns.

“Whoever is going to be elected or re-elected tomorrow (in the United States) will be faced with that challenge, and will have to tackle that issue upfront, very shortly,” said International Monetary Fund Managing Director Christine Lagarde.

“First and foremost the U.S. leadership needs to address quickly the so-called fiscal cliff and the debt ceiling, those two risks … are clearly Login to read more

Related Posts

Comments are closed.

« »