Tharman grim about global economic outlook, sees bright spot in Asean
HONG KONG - Singapore Deputy Prime Minister Tharman Shanmugaratnam on Tuesday provided a grim, unvarnished assessment of the global economic outlook, saying that the impact of the latest round of quantitative easing by the United States Federal Reserve "may be less than hoped for".
"Liquidity is not the solution," he said at an investors seminar here, attended by the finance ministers from Asean. "The solution has to do with the restructuring of debts, and most importantly, restarting growth through structural reforms that bring confidence to investors."
Without these, economies such as the US and Europe face the prospect of lower growth, not just in the short run, but in the medium to long term, he warned.
"There's that risk of lower growth over the medium to longer term if policies are not put in place soon in a determined fashion to address the structural problems that are the heart of the situation we face," he said.