Economic Imbalances May Hit Global Growth

July 21, 2006
The Organization for Economic Cooperation and Development (OECD) secretary general Angel Gurria said July 21 that global economic balances were casting a shadow over an otherwise benign outlook for the world economy. Countries needed to play by the same ...

The Organization for Economic Cooperation and Development (OECD) secretary general Angel Gurria said July 21 that global economic balances were casting a shadow over an otherwise benign outlook for the world economy. Countries needed to play by the same rules or else imbalances such as the large U.S. trade deficit and rigid Chinese monetary policy could "unwind in an abrupt type of behavior," he said.

"We are normally used to economies balancing out by devaluation (or) revaluation" of their currencies, he said. "This is the normal way if everyone is playing the same rules. But one very large player is not playing by the same rules," he said, apparently referring to China.

Another concern is high oil prices, Gurria said, forecasting a doubling of energy consumption over the next 40 years. At the same time, however, alterative energy sources and more efficient. technologies meant that the world was using less oil per dollar of gross domestic product, he noted.

Gurria, on his first trip to Japan since becoming head of on June 1, also called for greater cooperation to conclude stalled talks on a global free trade pact.

Copyright Agence France-Presse, 2006

Popular Sponsored Recommendations

Why DataOps may be the key to unlocking the full potential of digital transformation

Nov. 3, 2023
Read the 2023 market survey conducted by IndustryWeek

Food and Beverage 2024 Trends and Outlook for North America

Oct. 29, 2023
Ready to hear what 200 of your peers said are the top challenges and opportunities in 2024? Don’t fall behind. Uncover actionable insights to better prepare for 2024 in this whitepaper...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

How Digital Twin Technology is Empowering Manufacturers

Sept. 27, 2023
This FAQ delves into why this technology offers business value and considerations toward implementation.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!