MercoPress. South Atlantic News Agency

World economy “is very strong”, says US Treasury Secretary

Treasury Secretary Henry Paulson

United States Treasury Secretary Henry Paulson in the middle of an Asian tour and currently in South Korea expressed confidence in the global economy describing it as strong and characterized by low inflation.

"We have a very strong global economy" Paulson told reporters after meeting South Korean Finance Minister Kwon O-kyu. "We have a global economy with low inflation, high levels of liquidity and I feel very comfortable with the global economy." Paulson made the remarks when asked if he thought the worst of the recent global stock sell-off was over after markets worldwide, including in the United States, rose Tuesday. Paulson, in the middle of a three-nation Asian tour, arrived in South Korea late Tuesday from Japan and was scheduled to depart for China later Wednesday. In Tokyo, Paulson said that the global economy is as strong as he's ever seen it and that reform in China would help lessen the kind of market volatility that has recently rocked international stock markets. During his brief stop in South Korea, his first since becoming treasury secretary in July, Paulson is likely to discuss efforts by the United States and South Korea to conclude an ambitious free trade agreement. Free trade negotiators for the two sides plan to meet in Seoul for five days from Thursday in an attempt to conclude an agreement by the end of this month. If successful, it would be the biggest such deal for Washington since the North American Free Trade Agreement in 1993.