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Obama warns of more crises if imbalances not tackled

Published 11/14/2009, 11:08 PM
Updated 11/14/2009, 11:09 PM

SINGAPORE, Nov 15 (Reuters) - U.S. President Barack Obama said on Sunday that the world economy is on the path to recovery but a failure to address policies that led to imbalanced growth will lead to further crises.

"Economies around the world are beginning to grow again. And we are on the path to recovery," he said in remarks prepared for delivery at an Asia-Pacific summit.

"But we cannot return to the same cycles of boom and bust that led to this recession. We cannot follow the same policies that led to such imbalanced growth. If we do, we will continue to drift from crisis to crisis, a failed path that has already had devastating consequences for our citizens, our businesses, and our governments."

Obama also said in the speech that Washington would take steps to reduce the United States' long-term deficit and would work with South Korea to move forward on a free trade agreement. (Reporting by Caren Bohan; Writing by John Chalmers; Editing by Bill Tarrant)

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