Speaking at the APEC CEO Summit in Hanoi, Supachai Panichpakdi, former head of the World Trade Organization and current director general of UNCTAD, cautioned that the United States' current account deficit poses a serious risk to global economic stability.
The deficit, projected at around 840 billion dollars for 2006, has emerged as a concern even as the world economy has experienced strong growth over the past five years, with the Asia-Pacific region alone accounting for roughly half of global trade and nearly half of all foreign direct investment.
Supachai argued that continued reliance on U.S. consumer spending to drive world growth is unsustainable. He called on Asian economies to boost domestic consumption and on developed nations to increase savings rates, warning that failure to rebalance could trigger a deflationary spiral and a prolonged global downturn.
The Hanoi summit, drawing 21 leaders from Asia and the Americas including President George W. Bush, was expected to focus on reviving the stalled Doha Round of trade talks and advancing alternative energy initiatives. Supachai urged the global community not to let the Doha Round collapse, calling it unacceptable for trade-oriented APEC members.
Historical summary. TurkishPress restated this wire report, first published in November 2006, in its own words.