Global recession 'inevitable': Aso
Thursday, 23 October 2008
TOKYO, Oct 22 (PTI): Fearing as "inevitable" a global recession following the US financial meltdown, Japanese Prime Minister Taro Aso said the magnitude of the turmoil was increasing in "seriousness" and wanted the international community to make "concerted efforts" to tackle the crisis.
"The financial turmoil arising from the sub-prime loan issue in US August 2007 is increasing in seriousness. I recognise that financial crisis triggered by the bankruptcy of Lehman Brothers could lead to a global recession.
"Although the impact of this financial crisis on Japanese financial institutes has been limited so far, it seems inevitable that the slow-down of international economy will have an influence on the Japanese economy as well," Aso told newsmen in an e-mail interview.
He noted that on October 10, leaders of the G8 countries, including Japan, had issued a statement which declared their determination to fulfil their responsibility in restoring confidence in the international finance system, and emphasised the importance of cooperating with emerging economies including India.
"The financial turmoil arising from the sub-prime loan issue in US August 2007 is increasing in seriousness. I recognise that financial crisis triggered by the bankruptcy of Lehman Brothers could lead to a global recession.
"Although the impact of this financial crisis on Japanese financial institutes has been limited so far, it seems inevitable that the slow-down of international economy will have an influence on the Japanese economy as well," Aso told newsmen in an e-mail interview.
He noted that on October 10, leaders of the G8 countries, including Japan, had issued a statement which declared their determination to fulfil their responsibility in restoring confidence in the international finance system, and emphasised the importance of cooperating with emerging economies including India.