First, current account imbalances allow countries to smooth consumption over time, for example, in response to the ups and downs of the world price of a major export. Second, current account imbalances - which represent the difference between domestic savings and domestic investment - allow savings to be allocated to those parts of the world where they can be invested most productively.
At this juncture, I should like to express concern about the impact that slower growth may have on the determination of the governments of some countries to adhere strictly to the Stability and Growth Pact in the context of their existing stability programmes.