Friday, September 25, 2009

Leaders Face Dilemma on When to Unwind

The global economy appears to be growing, after weathering the worst world-wide recession since the 1930s. But the severity and scope of the crisis and the downturn it provoked make the recovery's pace highly uncertain -- posing a dilemma for leaders at the Group of 20 summit.

The stimulus efforts and other programs governments have put in place to revive their economies are incredibly costly, saddling countries around the world with budget deficits that could weigh on future growth. The International Monetary Fund forecasts that in the next few years debt levels for the Group of 20 leading and developing nations will average more than 100% of gross domestic product -- the value of all goods and services produced by an economy.

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