Source: Xinhua

03-30-2009 08:26

LONDON, March 29 (Xinhua) -- There is arguably no immediate remedy for fixing the sagging world economy. Yet the forthcoming London G20 summit has drawn worldwide attention, as it aims to make a mark in putting the global economy on the road to recovery.

So will the London event live up to expectations?

Since late last year, the U.S. financial crisis has spilled over into all economic sectors, and is taking its toll on a global scale. The world economy has suffered an unprecedented setback, and is expected by the International Monetary Fund (IMF) to shrink for the first time in 60 years in 2009 by up to 2 percent.

The collapse of businesses, the loss of jobs and falling confidence all paint a bleak picture of what is believed to be the worst recession since the 1930s Great Depression.

Up to 2 trillion U.S. dollars involved in the global fiscal stimulus measures have yet to yield any encouraging results.

The consequent growing government deficits have become a topic of concern among the British and U.S. public. Many people are worried that their governments have created massive debts for future generations of taxpayers.

The G20 countries have been urged by the IMF to invest the equivalent of 2 percent of their GDP into stimulus efforts during 2009 and 2010. But the proposals have failed to draw unanimous support from many of the G20 members.