We have just lived through the greatest challenge to the world economy in generations. In acting together, policy makers have shown that they understand the most important lesson of this crisis: Our economies are inexorably linked. We must now work together to ensure strong, stable and balanced growth in the future.
That is why we will be working together at this week's Asia-Pacific Economic Cooperation (APEC) meeting in Singapore to couple adjustment in deficit countries like the U.S. with the more rapid growth of domestic demand in surplus countries. As U.S. households save more and the U.S. reduces its fiscal deficit, others must spur greater growth of private demand in their own economies.
We also must keep our sights on maximizing the potential of global markets. Both exports and imports remain critical stimulate the flow of knowledge and innovation that is enabling emerging economies to catch up with developed-world living standards.
APEC will play an indispensable role in establishing strong, sustainable and balanced growth. Our 21 members—which include nine members of the G-20—account for 40% of the world's population, over half of global GDP and nearly half of world trade. Our ranks include the world's largest and fastest-growing economies. In the past two decades, we have promoted open markets by lowering tariffs among member economies by two-thirds and expanding trade by five-fold. No group is better-positioned to carry forward the principles for rebalancing global growth that the G-20 leaders agreed to in Pittsburgh in September.
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