Paulson Repeats Views on U.S. Economy in Speech on Developing Nations
April 13, 2008 – 8:50 pmvia Action Forex
(CEP News) - Despite the slowdown in the U.S. and other industrialized nations, the outlook for the developing world remains optimistic, U.S. Treasury Secretary Henry Paulson said on Sunday.Paulson was speaking to the Development Committee, a body that focuses on the needs of poorer countries. At the beginning of his speech, Paulson repeated prior statements on the U.S. economy - saying that while the short-term outlook is trying, the long-term outlook is good.
“While the long-run economic fundamentals remain sound, the U.S. economy faces challenges. The housing correction, credit market turmoil and high oil prices are all weighing on growth and short-term risks are to the downside,” he said.
Despite the risk stemming from the world’s richest economy and an anticipated slowdown in global growth, poorer countries continue to develop, Paulson said.
“It is important to remember that developing countries are on track to record their sixth consecutive year of average GDP growth in excess of 6%, an accomplishment unparalleled in recent history,” Paulson said.
“Stronger macroeconomic policies, buoyant external demand, low real interest rates, and increased access to private capital markets - over $600 billion in net private inflows in 2007 - are major factors for strong growth performance.”
Paulson also said high commodity prices have improved developing countries’ terms of trade.
