US imbalance in imports and production triggered crisis

Business Materials 27 November 2008 23:01 (UTC +04:00)

The United States imported 5 trillion dollars more than it produced in the past decade and this was a major cause of the global financial crisis, an aide to the World Economic Forum chief said Thursday, dpa reported.

The aide, speaking with Deutsche Presse-Agentur dpa, quoted Klaus Schwab, founder and chairman of the forum, as saying "that imbalance triggered the current financial crisis."

As debt became unsustainable, governments had to step in to cover losses, he said.

The upcoming Davos forum, which convenes in January, is to focus on the crisis, under the banner "shaping the post-crisis world," though there is no indication yet that the economic woes are set to end by then.

Some 1,200 business professionals and at least 43 public figures are set to attend the 39th annual forum, the aide said, noting this was to be a "record participation" level.

Russian Prime Minister Vladimir Putin will open the event, while the names of the other senior participants will only be made available a week before the start of the conference.