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British PM Sees Support for Global Economic Action

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British Prime Minister Gordon Brown says the leaders of the Group of 20 rich and developing nations should outline a better economic order, and make sure the economic recovery continues.

The G20 leaders are gathering in the eastern U.S. city of Pittsburgh later this week to discuss economic and other issues. 

Mr. Brown is among the leaders who say it is vital to resolve huge financial imbalances among nations in trade, savings and consumption that played a role in the financial crisis, and could leave the economy vulnerable to similar shocks in the future.

Some economists say the imbalances would ease if big exporters like China, Germany and Japan consumed more, while big debtors like the United States saved more.

Economic data show many parts of the global economy are beginning to recover from the recession and resume growth.  That is why G20 officials are to discuss how to coordinate the end of efforts to stimulate their national economies, which include massive spending on public works projects and slashing interest rates to very low levels.

Ending these stimulus programs is complex because cutting the effort too soon risks pushing the economy back into recession, but continuing stimulus programs too long runs up national debts and risks sparking inflation.

French Finance Minister Christine Lagarde says signs that the economy is beginning to recover should not be an excuse to avoid economic reforms.

French and German officials are proposing stricter regulation of the financial sector, including limits on executive pay. 


Some information for this report was provided by AFP, AP and Reuters.

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