Asia Pacific Economy Need To Grow To Release Euro Crisis Pressure

By STAFF Writer
November 13, 2011

AUSTRALIA NEWS - Australia's Treasurer Wayne Swan said this Sunday that economies of the Asian region needed to "redouble their efforts" to increase domestic demand and that their economies needed to be restructured. This was due to the debt crisis in Europe.

Swan admitted that there was a clear sense of frustration in the talks of the finance ministers in Honululu but they did urge the Asian to learn their lessons from this economic turmoil in Europe. The global economic outlook which has weakened due to the crisis in Europe means that the countries of Asia could no longer depend on foreign demand to keep fuelling their economic development.

He added that the governments of these countries should do more to increase the domestic demands of their areas and they need to restructure their monetary policies to depend more on market-based exchange rates. The crisis, Swan said, were hitting the financial markets, dampening trade and also disturbing businesses and the consumers in the region.

Swan's woes in urging the Asian countries seem to be the reason that the crisis would also affect Australia and cost the country AUS$130 ($ 134) billion in revenues. Swan said that the APEC finance ministers had put more stress on developing infrastructure, from critical to future capacity and on creating cross-border markets to manage funds. But Swan has also warned that the individual countries also need to act now, because, he said that the speed with which things can happen is unpredictable- the European crisis being a perfect example.

Australia's treasurer Wayne Swan

Banner at Waikiki beach highlighting APEC summit, Honolulu, Hawaii

Face copy of TIME magazine showing Italy's Prime Minister Silvio Berlusconi

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November 13, 2011 | 0 comments

G-20 Summit Meets To Find A Solution For Global Currency War

By MALILA Harris

KOREA NEWS - The global currency war has put bar on global economic recovery. To find a solution to the problem, the Group of 20 nations are planning to meet in Seoul next week.

The meeting is expected to a find long lasting solution for international concern, putting behind national interests and tame the crisis. The cooperation among countries are needed to find a solution with a common consensus.

South Korean President Lee Myung Bak said that cooperation among all countries was of utmost importance. and if all the countries looked for their own selfish need that would bring trade protectionism and in long run would cost world economy a big problem. He was hopeful to attain a good results from the future summit.

To be in safe side and protect from the global crisis, major economies have allowed their currencies to depreciate aftermath the global crisis and made their exports cheaper and imports expensive.

In the process of devaluation dollar weakens and currencies like euro and the Chinese Yuan have become strong, allowing China to bring a huge trade surplus.

In a recent announcement US Federal Reserve that buys up to $600 billion of government debt to boost economic growth and increase employment rates. It is reported that US has facing a 10% decline in its economic growth that put huge pressure on US President.

European Commission President Barroso and European Council President Van Rompuy asked for a political commitment to cooperate among nations and find a long term solution. They find the tension of global currency has caused much headache to global economy.

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November 09, 2010 | 0 comments