Despite raucous protest in the streets, the leaders of the world were able to come to an agreement on the economy at the G20 Summit in Toronto.

The group of 20 nations, which included super powers like the United States, Japan, England, Germany, and Russia, decided with the other invited nations to cut their country’s deficits and stop the growth of debt by 2013. The plan is to steady each country’s gross domestic product (GDP) and bring some stability to the world’ shaky economy by 2016.

President Obama praised all the nations for coming to the agreement and urged all involved to stick with the plan through the long haul.

“We must recognize that our fiscal health tomorrow will rest in no small measure on our ability to create jobs and growth today,” he said, adding that “in short, we have to do everything in our power to avoid a repeat of the recent financial crisis.”

As the leaders left the meetings there was concern that the nations would have to be careful not to have coordinated reductions that would harm the world economy. Everyone can’t reduce spending all at once, and they made that clear in their joint statement.

“There is a risk that synchronized fiscal adjustment across several major economies could adversely impact the recovery,” the statement said. “There is also a risk that the failure to implement consolidation where necessary would undermine confidence and hamper growth.”

With many of these countries impacted by the global economic crisis of 2008, this agreement seems to be a good show of progress. Raghuram G. Rajan, a former chief economist at the International Monetary Fund who is now a professor in the Booth School of Business at the University of Chicago, isn’t buying it.

“While the illusion of progress is good, I don’t see real action to alter the imbalances that brought us to this crisis,” Rajan told the New York Times.

“The US may be concentrated on premature fiscal tightening, but most other countries are looking with a nervous eye to the sovereign debt mess in Europe,” said Kenneth S. Rogoff, a Harvard economist and former IMF chief economist. “Aiming for a gradually improving debt-to-GDP ratio by 2016 is hardly wild-eyed fiscal conservatism.”

With more than 500 protestors arrested over the weekend, its safe to say that there were some people who didn’t agree with what was being cooked up in the meetings.

The world leaders plan to ride the momentum from this meeting into their next gathering, in November in Seoul, South Korea.

Source via K!dult

Its gonna be a little bit more tougher now in the UK…In general maybe worldwide, for those in serious amounts of debts. Let us know what you think on this.