Governments have played down expectations of a big breakthrough in resolving global economic imbalances from the G20 leaders’ meeting this week in Seoul after clear divisions emerged over currencies and current account deficits.
On Wednesday Barack Obama, US president, reiterated the need for countries with current account surpluses – a category including China and Germany – to increase domestic demand rather than relying on exports.
A plan agreed at an October meeting of G20 finance ministers “commits us all to pursue policies to reduce the risk that unsustainable external imbalances will re-emerge”, he said.
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