Global recession "inevitable": Japanese PM

TOKYO: TOKYO: 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 PTI 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 fulfill their responsibility in restoring confidence in the international finance system, and emphasised the importance of cooperating with emerging economies including India.

Again, last weekend, US President George W Bush has proposed that he would host a summit meeting in order to keep the financial crisis from happening again.

"I support President Bush's proposal," Aso said. "Japan, as the Chair of the G8 Summit this year and a country with experience of overcoming financial crisis, would like to play a central role in the meeting. "I hope, through these concerted efforts of the international community, the world economy will get stabilised and become prosperous again.
"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 PTI 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 fulfill their responsibility in restoring confidence in the international finance system, and emphasised the importance of cooperating with emerging economies including India.

Again, last weekend, US President George W Bush has proposed that he would host a summit meeting in order to keep the financial crisis from happening again.

"I support President Bush's proposal," Aso said. "Japan, as the Chair of the G8 Summit this year and a country with experience of overcoming financial crisis, would like to play a central role in the meeting. "I hope, through these concerted efforts of the international community, the world economy will get stabilised and become prosperous again.