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G-20 Tell America to tackle Major Fiscal Challenges

By Ottoabasi Abasiekong on November 5, 2012

The importance of the U.S Presidential elections to the globe has been highlighted this week as finance ministers of the Group of 20 nations meet in Mexico city.

Their major concern beyond who wins the election on Tuesday, is how America can avoid a $607billion fiscal cliff that could see record tax increases and spending cuts that would seriously hit the U.S and the globe.

Bank of Japan Governor Maasaki Shirawa ahead of the meeting made a clear point that ‘the time has come for each nation to solve its economic problem’.

Japan also is facing a potential fiscal pullback this last quarter of the year, and this defines the challenges of the global economy at the moment which a slow growth process.

Australian Treasury Head Mr Wayne Swan said in his weekly economic note.’Its critical that leaders of many economies now get on with necessary needed to underpin growth’.

For the first since the ‘euro crisis’ focus and attention will be on the U.S high potential risk of a fiscal cliff, which will demand incisive leadership from whoever wins the Tuesday’s elections because the global leading power is in aprecarrious economic state.

In a recent poll of Global investors by Bank of America and Merill Lynch showed that 47% have fears, concerns and growing unease toward the American economic future.

Canadian Finance Minister believes in the near term the U.S is a high risk and beyond the euro debt crisis, the issue of the U.S must be given urgent attention and necessary steps taken to avert any impending crisis or economic disaster.

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