UPDATE 1-Ahead of G20 meeting, Canada raises concerns about global economy

Thu Feb 5, 2015 1:23pm EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

(Adds remarks about Fed, central bank rate cuts, ECB easing)

By Randall Palmer and Leah Schnurr

OTTAWA Feb 5 (Reuters) - As the Group of 20 leading economies head into ministerial talks in Turkey next week, Canada highlighted the uncertainty of the global economy and concerns over the ability of the United States to sustain global growth.

A senior Canadian finance official, briefing reporters on Thursday ahead of the meeting Monday and Tuesday of finance ministers and central bank governors, cited lower growth expectations for most parts of the world except the United States.

Although it was appropriate to expect the world's largest economy to shoulder a good deal of the burden of restoring broad-based growth, the question is whether the United States could carry it alone, the official said.

The G20 came into its own during the 2007-09 financial crisis when it put together a global stimulus package, but it is facing a more delicate challenge now of arriving at joint action when economies are running at different speeds.

The U.S. Federal Reserve looks to be on track to raise interest rates this year, a stark contrast to several other surprise rate cuts in the past month by central banks around the world, including the Bank of Canada.

The G20 communique will likely point to the importance of those central bank actions in sustaining near-term demand growth, the official said.

He said the Fed and the Bank of England had voiced support for other central banks doing what they had to do to promote growth.   Continued...