Strong growth in the US economy is being financed by the United States' budget and trade deficits, and this carries risks for foreign exchange and interest rates, French President Jacques Chirac said on Tuesday.
Speaking to members of non-governmental organisations, Chirac said leaders from the Group of Eight (G8) countries would address the twin US deficits at a June 8-10 summit in Sea Island, Georgia, in the United States.
"At a time when France and Europe are pursuing vital, but difficult, reforms, the stronger growth being enjoyed today by the United States is being financed by increased (budgetary and trade) deficits," Chirac told the meeting, according to his spokeswoman.
"This situation carries risks, especially for exchange rates and interest rates. We will discuss it," he said.
"We will also address the possible consequences of the strong rise in the price of oil on global growth," he added.
Oil prices on Tuesday came off 21-year highs, with US light crude futures trading at around $40.80 at 1510 GMT.
The June summit will bring together the United States, Japan, Germany, Britain, France, Italy, Canada and Russia on Sea Island, an exclusive resort of million-dollar summer homes.
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