China supportive of rebalancing global economy, says U.S. Treasury Secretary

November 9th, 2010 - 4:11 pm ICT by ANI  

New Delhi, Nov 9 (ANI): U.S. Treasury Secretary Timothy Geithner has said that China is supportive of the G-20 framework for rebalancing the global economy.

Speaking during a conference on ‘India-U.S.: An Agenda for Co-Creation’ here on Monday, Geithner hoped that a broad consensus would be achieved on the issue during the G- 20 leaders’ summit in Seoul, later this week.

“I am very confident that you’re going to see very strong consensus on this basic framework because it meets the basic tests and it’s better than the alternatives. Infact, the Chinese are very supportive of it. It has a lot of benefits to them,” Geithner said.

The run-up to week’s G-20 summit has been overshadowed by disagreements over moves by the U.S. Federal Reserve to print extra money to buy 600 billion dollars of government bonds over coming months.

Geithner further praised India’s domestic-driven growth and stated that with stronger investment in infrastructure and financial reforms, it was “perfectly achievable” for India to sustain an 8 percent to 9 percent annual growth rate in the years to come.

“You have been growing pre-crisis at 8-9 percent. It seems perfectly achievable that you sustain this… growth over a period of time. It is going to require more reforms in the financial sector and elsewhere to sustain that and the challenges you face in infrastructure and the financial system would be significant in trends and growth unless you are able to relax those over a period of time,” he said.

Geithner, however, added that with strong growth in emerging economies and capital inflows from slower-growth advanced economies signs of broader inflationary pressure have started appearing in emerging economies like India. (ANI)

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