THE LATEST ECONOMIC NEWS (May 2004) from the United States, Japan, and Asia is positive. Of all the G7 countries only Canada remains obsessed with balanced budgets and avoiding deficits. In Japan unemployment has now fallen to 4.7 per cent from 5.4 per cent a year ago and growth is a robust 5.6 per cent The United States is running a deficit that is almost 5 per cent of its GDP, which the Democrats deplore and the New York Times dislikes. But an economic recovery is taking root. Growth is 4.2 per cent and unemployment has dropped to 5.6 per cent from 6 per cent a year ago. The Chinese and Indian economies are experiencing booms with growth rates in excess of 9 per cent in China and over 10 per cent in India. Canada with its zealous policy of balanced or surplus budgets has growth of 1.6 per cent and unemployment of 7.3 per cent. In Europe, with overall unemployment at 8.8 per cent, the European Union continues to denounce countries like France and Germany that have run deficits that exceed 3 per cent of the GDP or 60 per cent of the debt-to-GDP ratio on the grounds that they are violating the stability pact that governs the common currency and the very monetarist European central bank. But unemployment is 9.8 per cent in France and 10.5 per cent in Germany. The one major European country that so far has refused to join the stability pact and the common currency, Great Britain, has an
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