Geithner confident that agreement can be reached to rebalance global economy

The Obama administration is trying to move the discussion at the G-20 from policies aimed at combating the financial crisis to ones aimed at cultivating worldwide economic growth. 

The IMF estimates global growth could increase by 2.5 percent under a broad agreement among major countries. 

The Obama administration is looking to spur U.S. exports by improving its relationship with India and possibly finishing a long-delayed trade agreement with South Korea. 

Geithner said India could play an important role in U.S. exports due to its strong internal growth and exchange-rate flexibility. 

“We want the exchange rate to work with that process, not against,” Geithner said. 

He pointed out that an appreciation of the Chinese currency, the yuan, was just beginning and said there is a shift in the political debate in China on “how fast to float its rate.”

“They’re doing that because it’s overwhelmingly in their interest and it’s important that they continue that process,” Geithner said. 

Signs of growth in the United States are positive, especially in private investment and exports, he said. 

“Growth in the U.S. is going to be probably twice the rate of Europe for a long time to come,” he said.