MONEY MATTERS

Indian Finance Minister Pranab Mukherjee calls the leaders of G20 to ensure the growth of the world economy. There is a fear of a double dip recession caused by the problems in the European economy and the still struggling U.S. economy. He has said that the leaders of G20 must discuss to remove the fear of a double dip recession.

A two day G20 ministerial was held in Paris which will prepare the ground work for the leaders of the summit to be held at Cannes on November 3-4. G20 is formed by the rich and developing nations that account for 85% of global output. Mr. Mukherjee has said that G20 should “concentrate on the development aspects and provide positive signals” to help the economy to come out of the current global problems.

The global growth depends on the economy of the growing nations and the current crisis in the U.S. and the European countries will lead the global economy to a great fall. He has said that the emerging economies which were performing much better have also started to slow down. China has come down from a double digit growth to single digit. Only Turkey has shown a 10% growth, followed by China with a 9% growth, Mexico with a 9% growth and India with a 7.7% growth.

Mr. Mukherjee has also said, “ Unless the world economy has a robust growth it would have an adverse impact on the world output and is also going to affect the emerging economies”.

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