US economy can no longer be “debt-driven” and needs to be “export-driven”

 Appearing at the meeting of Economic Recovery Advisory Board the US President Barack Obama stated that while the economy turned its direction to a healthy path there are still job losses expected further. He called for a new "post bubble growth model" with greater focus on U.S. exports, citing the success of Germany in this area.

"If Germany, a wealthy, highly unionized industrial nation, can generate 40 percent of its economy as export-based, then it seems to me that there is something we're missing that they are doing right, and we have got to figure that out," he told a meeting of his Economic Recovery Advisory Board.

The recession is considered as over due to sharp rebound in US growth between the period of July and September. Meantime, unemployment increased to 9.8% and continues worsening.

"We anticipate that we are going to continue to see some job losses in the weeks and months to come," Obama told the advisory board in a meeting.

"There is a -- always a lag of several months between businesses starting to make profits again and investing again, and then actually rehiring again," he said.

The President noted that while the economy looks like stabilizing we still face along way to go and policymakers are called upon to create better models for future growth.

"Are there mechanisms that we can start putting in place where we see the kind of growth that used to characterize the U.S. economy -- export-driven growth, manufacturing growth," he demanded of the panel, which included business leaders as well as former Federal Reserve Chairman Paul Volcker.

He said past U.S. growth had been "debt-driven" and that was no longer feasible. With the United States running record budget deficits as it spends furiously to try to stimulate the economy, Obama said it is going to be vital to find innovative new ways to finance growth, and the old approach would not do.