“G20 keeps stimulus amid global bounce

By Europe correspondent Emma Alberici

Posted Sun Nov 8, 2009 9:44am AEDT
Updated Sun Nov 8, 2009 9:55am AEDT
Mr Swan says it is appropriate for the world’s 20 richest nations to continue economic stimulus measures.

Mr Swan says it is appropriate for the world’s 20 richest nations to continue economic stimulus measures. (AAP)

Finance ministers from the world’s 20 richest nations – including Federal Treasurer Wayne Swan – have agreed to keep stimulus measures in place until the global economy has fully recovered.

A statement issued after the G20 meeting in Scotland says the economic recovery is uneven and remains dependent on support.

It states that unemployment is still a major concern.

The policy makers, led by British chancellor Alistair Darling, also agreed that the challenge ahead would be the transition from crisis response to stronger sustainable growth.

“Just as we’ve seen that the action of the last few months was born through the crisis of economic downturn, so we have agreed to take just as dramatic action of the next few years so we get growth in the future,” Mr Darling said.

“To restore the global economy and financial system to health, we’ve agreed to maintain support for the recovery ’til it is assured.”

Mr Swan says it is appropriate for the world’s 20 richest nations to continue economic stimulus measures.

He told ABC1′s Insider program that while Australia’s economy is in recovery, it is not immune from international factors.

“Keeping in place the stimulus that we designed at the beginning of this year – one which is drawn down for the rest of this year and detracts from growth next year – is entirely appropriate, given these global conditions,” he said.

US treasury secretary Timothy Geithner backed the pledge.

He says in the US, the pace of job losses has slowed very sharply but unemployment is still very high.

“If we put on the brakes too early we’re going to weaken the economy and the financial system, unemployment will rise, more businesses will fail, budget deficits will rise and the ultimate costs of the crisis, economic costs and fiscal costs, will be greater,” he said.”

http://www.abc.net.au/news/stories/2009/11/08/2736342.htm?section=world