June 29, 2010 1:59 PM

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Leaders of G-20 group of nations decide against immediate withdrawal of economic stimulus to preserve fragile global recovery

Leaders of the G-20 group of nations decided against immediate withdrawal of economic stimulus to preserve the fragile global recovery. Reflecting India's concerns, articulated by Prime Minister Manmohan Singh that any immediate exit from stimulus could lead to double-dip depression, the Toronto Declaration at the conclusion of the Summit said, countries should themselves decide on the contentious financial levies. It said, to sustain recovery, countries need to follow through on delivering existing stimulus plans, while working to create the conditions for robust private demand. Meeting against the backdrop of Eurozone crisis arising from government debts, which was compounded by the 2008 financial crisis, the Summit struck a balance by allowing advanced economies to adopt fiscal plans to at least halve deficits by 2013 and gradual unwinding of stimulus. It will also help stabilize or reduce government debt-to- GDP ratio.

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