Leaders commit to sustained growth, ease off stimulus spending
Over the weekend in Toronto, leaders of the wealthiest G20 countries said they would cut their government deficits in half by 2013, and “stabilize” debt loads by 2016. The move suggests that governments are focusing now on tackling growing deficits and debts following stimulus spending during the recession. The closing statements from the U.S. and European countries showed two different visions of economic recovery—the U.S. was cautious about cutting stimulus spending while Europe was wary of unsustainable debt loads. A “combo deal” that was growth friendly, was reached. However, there was little focus on developing countries and China’s currency wasn’t specifically mentioned.