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White House's Summers: good if China boosts demand

Published 11/30/2009, 09:27 PM
Updated 11/30/2009, 09:30 PM

WASHINGTON, Nov 30 (Reuters) - President Barack Obama's top economic adviser said on Monday that the United States would no longer be the engine of world growth by importing goods from all over the world, adding China should boost domestic demand.

"There is no way that our import-led growth is going to be the driving force for the entire rest of the world to have export-led growth going forward," said Lawrence Summers, director of the White House's National Economic Council.

Rebalancing that pattern of global economic activity was the core of Obama's message to the G20 at a summit in September, and Summers said that China clearly stood out because its consumption, as a share of its economy, was half that of the United States.

"That is why their commitment to move to more consumption and move toward more demand-led growth are important," he said.

(Reporting by Alister Bull) ((Editing by Stacey Joyce; Washington newsroom, +1-202-898-8392, email: alister.bull@thomsonreuters.com))

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