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The following article was published in our article directory on November 9, 2010.
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Global Economy Uneven Recovery Situation Continued

Article Category: Business

Author Name: xia zihui

Held in June of this year when the G20 summit in Toronto, compared the current global economic situation, what changed? What appeared new risks and contradictions? Imbalances in the global economy continues to recover at the same time, differences in national policies are also expanding, does this mean that the current national has entered the "parallel tracks" of the times, strengthened policy coordination among each other, whether it is still necessary? November 8, the Chinese Academy of Social Sciences, Institute of Political Economy He Fan, deputy director of the interviewed said that the whole, the current global economic situation has been slowing down, but still there are many potential risks. Therefore, G20 summit in Seoul will continue to urge States to ensure a sustainable recovery in the global economy. Although not synchronized global economic recovery has led to differences in policy, but currently there are still countries need to strengthen coordination and cooperation.

Although the European debt crisis on the global economic recovery will drag, but with the governments policy of large-scale effects of economic stimulus for further apparent, investor and consumer confidence has been restored, especially in emerging economies, driven by strong growth under the the pace of global economic recovery from the G20 summit in Toronto, although there has been slow, but still maintained a continuing trend of slow recovery, "double dip" risk further. The latest data, including the U.S., Eurozone and other advanced economies among the current economic growth is still modest, China, India and other emerging economies are still growing at a high level of intensity.

"Compared with the G20 summit in Toronto, the whole global economy slowing, the recovery trend is not balanced continues," He Fan said that the European summit in Toronto to become parties to the debt crisis, the focus of attention. But now, European sovereign debt crisis is mainly in the financial sector, the impact of the European economy is not great.

"Despite the recovery in the global economy as a whole, but there are still many potential future risks," He Fan believes that developed countries such as Europe and America is still a heavy burden of public debt. Data show that, as of September 30, 2010, the U.S. federal budget to a record 1.47 trillion, the deficit accounted for the proportion of total economic output by 10%. U.S. government expects the next 10 years, the total size of the fiscal deficit will reach 7.1 trillion U.S. dollars. The euro area and EU government public debt share of GDP, the next few years will be far more than the 60% limit. Public debt is the Government of Japan ranks first in the developed countries. "In addition, global economic imbalances is one of the potential risks," said He Fan, and associated with this high unemployment rate in many countries, the exchange rate and trade disputes continue rising protectionism, will be a negative impact on the global economy .

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