US’s Summers says G20 should bolster growth

WASHINGTON, June 24 (BestGrowthStock) – Leaders of the world’s top
economies must ensure they maintain growth, senior White House
adviser Lawrence Summers said on Thursday ahead of a G20
meeting where Europe is expected to support curbing deficits.

In an interview with Reuters Insider, Summers said
countries should concentrate on getting their economies on a
secure growth path that creates jobs.

He said the economy was still recovering from the 2007-2008
financial crisis, and that it was no time to be complacent just
because the danger seemed less acute than a year ago.

“At (that) time it was reasonable to ask the question:
would the U.S. and global economy recover, it was reasonable to
fear the possibility of depression,” Summers said.

“Today those prospects look much more remote,” he added.

European leaders have made clear their preference for
putting budget austerity plans on the front burner at this
weekend’s G20 meetings in Toronto between President Barack
Obama and other leaders, setting the stage for a clash of
opinions between Europe and the United States.

Summers and U.S. Treasury Secretary Timothy Geithner this
week warned that focusing too soon on reducing deficits could
push the global economy back into a downturn.

Summers conceded it was important, in aiming for sustained
growth, to ensure that countries are pursuing plans for
reducing deficits that appear credible to financial markets.

But he added that there was a strong case for government to
take steps to bolster growth in order to ensure the private
sector is in a position to support longer-term recovery.

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( Reuters Insider video interview with Larry Summers:
http://link.reuters.com/dux43m )
(Reporting by Glenn Somerville and Caren Bohan; Editing by
Kristin Roberts)

US’s Summers says G20 should bolster growth