U.S. Economy Dominates Davos Summit

January 24, 2008 12:05 PM
by findingDulcinea Staff
World Economic Forum participants in Davos eye the U.S. economy warily and anticipate an increasing global role for developing countries. 

30-Second Summary

U.S. billionaire investor George Soros said that a recession in the United States and Britain is likely, the BBC reported. Soros, who is attending the World Economic Forum in Davos, Switzerland, said he approved of the U.S. Federal Reserve's emergency rate cut on Tuesday, which was followed by an upswing in the financial markets.

“You do have to rescue markets otherwise you would go into a depression, as you did in the 1930s,” Soros told the BBC. Soros also said that the current economic woes are a sign that global economic power might be shifting toward developing economies.

Most panels and workshops at this year’s edition of the forum focus on the U.S. economy.

According to a survey of top chief executives, economic recession is feared by most U.S. executives. By contrast, leaders from developing economies are confident of continued economic growth, with 90 percent of Indian executives saying that they are “very confident.”

Whether America will preserve its economic leadership is one of the main subjects at the forum. A WEF workshop is titled “When the United States Sneezes, Does the World Still Catch Cold?”

A Philadelphia Inquirer columnist says global leaders’ answers tend toward the negative. America’s leadership might be history, she writes.

Headline links: Recession tops agenda

Opinion & Analysis: America and the Developing World

Reference: World Economic Forum basics

Related links: Rice says U.S. willing to talk to Iran


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