Snow Turns up Pressure on Japan and Europe

    January 13, 2005

After the U.S. trade deficit reached a peak of $60.3 billion, Treasury Secretary, John Snow made demands for Europe and Japan to boost economic growth.

This was an attempt to give some balance to the global economy.

Snow said, “We are growing faster than our trading partners and we are creating more disposable income than they are. We need Europe to be more of an engine of growth and we need Japan to be more of an engine of growth.”

“The economy is growing, expanding, creating jobs and disposable income,” Snow stated, “and that shows up in the demand for imports.”

At next month’s meeting of finance ministers, Mr. Snow will attempt to pressure Japanese and European governments to boost their economic growth.

An article from Times Online says,

“The weakness of overseas demand for US goods was underlined by the 2.3 per cent drop in American exports in November, which affected most categories of products. Shipments of industrial supplies and materials, such as plastics and chemicals, were particularly badly affected, while exports of capital goods tumbled by 5.1 per cent.

The deficit was also exacerbated by a 1.3 per cent rise in imports driven mainly by increased US demand for crude oil from abroad, despite cheaper world oil prices. US consumer demand for household products and other goods also helped to boost imports.”

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