US economy continues to push global economy forward: Snow

The Unites States economy continued to be a major driver of global economic growth, US Treasury Secretary John W. Snow said here on Saturday.

"The US economy is performing very well, which economic reports in recent weeks have confirmed," Snow said in a statement following the two-day meeting of the Group of Seven (G7) finance ministers and central bank governors.

"Even in the face of severe weather disruptions, the US economic growth estimate for the third quarter was revised up to 4.3 percent -- the tenth consecutive quarter of above-trend growth," he said.

"The job growth in the United States was very strong, with a 215,000 increase in November, and nearly 4.5 million new payroll jobs created since the employment trough of May 2003, " said he, adding "This has given us an unemployment rate of 5 percent -- lower than the average rate of 1970s, 1980s and 1990s."

"Clearly, good economic policies that reward flexibility and openness are paying off in the US economy," Snow said.

According to the statement, Washington is committed to continue to curtail its budget deficits.

"We recognize its importance for the economic health of the country and for the international financial system, " Snow said.

"Our efforts reduced the budget deficit by 94 million US dollars this past fiscal year to 318 billion US dollars... however, that we need to do more," he added.

But Snow also expressed his concerns about the global economy.

"In my view, the potential rise of protectionism is the most significant risk to the global economy," he said.

"High oil prices were another risk to the global economy on the meeting agenda," he said.

As for the Doha Round, Snow said that it was very important to achieve "an ambitious outcome" by the end of 2006.

"Trade liberalization is essential to enhancing global growth and poverty reduction, and we cannot allow it fail, " he said.

"The Hong Kong Ministerial next week will be a critical next step toward that goal," he added.

As for the China's exchange rate, Snow said welcomed China's commitment that market forces will play an increasing role in the setting of China's exchange rate and past statements of placing greater emphasis on domestic sources of growth.

On Friday, finance ministers and central bank governors from the G7 countries gathered in London for two-day conference to discuss world trade issues.

Finance ministers of China, India, Brazil and South Africa also attend the dialogue with G7 finance ministers on the sidelines of the G7 meeting.

It was the last meeting of the G7 finance ministers in 2005.

The G7 generally holds four meetings each year, but it has added a fifth one this year to bid farewell to the outgoing 79-year-old US Federal Reserve Chairman Alan Greenspan, who will be succeeded by top White House economist Ben Bernanke, 51.

The G7 comprises Britain, Canada, France, Germany, Italy, Japan, and the United States.

Source: Xinhua