Singaporean SM Goh: Pittsburgh G20 to Maintain Stimulus Measures 'Necessary'
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It was necessary for the G20 summitin Pittsburgh later this month to agree to maintain the stimulus package, Singaporean Senior Minister Goh Chok Tong said at the ongoing 2009 Summer Davos forum in northeast China's port city of Dalian.
Whether to end the stimulus package was a "delicate" question,Goh said.
"If the stimulus package for each country is ended too early, then there is a real danger of the economy reverting back to what it was some months ago,"he said in an exclusive interview with Xinhua on Thursday evening on the sideline of the forum, also knownas the Annual Meeting of the New Champions 2009.
The former Singaporean Prime Minister compared the stimulus package to medication for a man who fell from a great height and had his bones broken.
"We are recovering from the stimulus package. But unlike a ballthat has fallen from a great height, the person doesn't bounce back," he said. "So the prospect for the world economy will be one of slow recovery."
Goh said although some people felt that there was still a dangerof another dip, he thought the economy was more likely to be "crawling forward."
He also warned that sustained stimulus package is likely to result in inflation, which will be another problem down the road.
"So the question is when do the leaders think we must have a coordinated exit from the stimulus package," he said.
"That decision has not been taken, as they do not want to upsetthe stock market and the process of recovery," Goh added.
Regarding China's economy, Goh said his expectation was that China could achieve its 8 percent growth rate target for the whole year.
"The worst is behind us. The world economy has fallen, the global economy has fallen, and despite that, China (economy) is growing by 7.1 percent (in the first half). Since we are now recovering, albeit very slowly, with very flat growth, the second half must be better than the first half," he said.
(Xinhua News Agency September 12, 2009)