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. Last Updated: 07/27/2016

Summers Says Savings Needed to Fuel Growth

WASHINGTON -- U.S. Treasury Secretary Lawrence Summers said Monday that open markets had brought the United States a raft of benefits, but domestic savings rates were too low.

Speaking to the World Affairs Council in Washington, Summers also repeated Washington's line that Japan needed to target faster growth.

Summers said the United States was a more successful economy than ever before. But there was no room for complacency that things would always be this good.

"We have important issues and problems that we must address in this country," Summers said, in a departure from his prepared text. "One is to provide for the requisite level of national savings to finance investment in our own country."

He added: "Our private savings rate is too low, and because of that, even with our budget surplus, our national savings lag that of other countries."

Summers noted that the need for a better balanced global economic system had been a key issue in weekend discussions between the Group of Seven leading industrial nations and said Japan recognized the need to aim for faster growth.

"Japan needs to raise its sights to rates of growth well above the 1 percent that was seen as a recovery," he said.