| |
| |
![]() |
| |
|
| |
|
| |
|
SINGAPORE : APEC finance ministers world economies must find new sources of demand, as they can no longer rely on the US consumer to continue driving exports in the post-crisis era.
US demand will take a long time - if ever - to rise back to levels seen before the financial crisis. And APEC economies agreed that they must implement structural reforms.
They also said they will not withdraw their stimulus policies, until they see a strong pick up in private spending.
Speaking as chairman of the Finance Ministers Meeting, Singapore's Finance Minister Tharman Shanmugaratnam said these reforms should be aimed at providing incentives for private spending and boosting purchasing power.
"We will not focus simply on macroeconomic policies, fiscal exit strategies, monetary policies, monetary and exchange rate policies. We talked a lot about the structural reforms that are necessary to sustain domestic demand growth beyond the fiscal stimulus that each of us has injected into our economies," said Mr Tharman.
Several ministers said they would not rush the withdrawal of fiscal stimulus packages.
US Treasury Secretary Timothy Geithner added that each APEC economy will have to take different exit strategies, saying there will not be a one-size-fits-all approach, and timing will be key.
"The important thing is a recognition that we need to make these decisions together in recognition of the basic mixes involving each of our countries. And I think that'll help improve the prospects that we come out of this with a firmer foundation for growth," said Mr Geithner.
The US treasury secretary said the challenge now is to restore business confidence, shrink unemployment levels, repair the financial sector and expand private investment. - CNA /ls
|
