Global growth must be re-tooled and rebalanced or Asian economies risk a “drift from crisis to crisis”, United States president Barack Obama warned a group of 21 world leaders in Singapore today.

Mr Obama’s comments followed a series of meetings with members of the Asia Pacific Economic Co-operation (Apec) summit — a week-long forum that declared the need for the world to wean itself off a reliance on the US consumer and follow a “new growth paradigm”.

“Trade as usual” and “growth as usual”, said the group which represents more than half of the global economy, were now things of the past.

For the time being at least, admitted Apec finance ministers, the new paradigm will be dependent on massive government stimulus spending as economies struggle to lock-in their recoveries. But a communiqué from the assembled leaders, who included China’s president, Hu Jintao and Japan’s prime minister, Yukio Hatoyama, also included a stern rejection of all forms of protectionism. That line, said officials of several Apec members, was a deliberate barb towards the US.

Issued shortly before his departure for China on Sunday evening, Mr Obama’s note of alarm comes amid apparently deepening mistrust between Washington and Beijing. The two countries are engaged in an escalating trade spat, and their leaders are poised to clash over currency exchange rate issues in coming days. US references to trade “imbalances” are charged with criticism of China’s reluctance to let its currency rise.

Apec’s final declaration attempted to strike a positive note , with talk of a giant trans-Pacific free trade agreement and other grand schemes. But the talks, particularly once Mr Obama had arrived in Singapore on Saturday night, betrayed both divisions and tensions among the group’s membership. The communiqué’s message on climate change called only for an “ambitious outcome” at summit talks in Copenhagen next month, while the exchange rate issues were excised completely from the final document.

Mr Obama’s comments were a rallying call to Asian consumers, encouraging them to start spending in place of the US consumer. It was Americans’ inability to continue spending last year that caused Asian exports to plummet, he said, “We cannot follow the same policies that led to such imbalanced growth”. The consequences of not doing so, he added were “a failed path that has already had devastating consequences for our citizens, our businesses, and our governments.”

Explore Economics

• Pre-Budget Report 2009

• Budget 2009

• World Economic Forum

• The Times MPC

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive