US, China urged to fix economies

The United States and China must urgently correct financial and investment problems before they overwhelm the economies of poor nations, AFP reported, citing Institute for International Economics economist Morris Goldstein. Goldstein said the problem was "the unsustainably high share of fixed asset investment in [China’s] gross domestic product" while the looming threat in America was its large current account deficit. He predicted a disastrous slowdown. "Investment cannot continue to increase as it has in the recent past," he told the American Economic Association in Boston.