Obama warns of more crises if imbalances persist

By Patricia Zengerle and Yoo Choonsik

SINGAPORE (Reuters) - U.S. President Barack Obama said on Sunday the world economy was on a path to recovery but warned that failure to re-balance the global economic system would lead to further crises.

Obama was addressing a meeting of Asia Pacific leaders in Singapore, where officials struggled to agree a final communique after Washington and Beijing debated the wording on market-oriented exchange rates and trade protectionism.

An APEC delegation official who declined to be identified said the statement had been delayed because of discussions between the two global giants on the sidelines of the meeting.

His comments suggested an earlier statement could be watered down and underscored the strains likely to feature when Obama visits China this week after Washington for the first time slapped duties on Chinese-made tyres.

Beijing fears that could set a precedent for more duties on Chinese goods that are gaining market share in the United States.

Obama told APEC leaders the world could not return to the same cycles of boom and bust that sparked the recession.

"We cannot follow the same policies that led to such imbalanced growth. If we do, we will continue to drift from crisis to crisis, a failed path that has already had devastating consequences for our citizens, our businesses, and our governments," Obama said.

"We have reached one of those rare inflection points in history where we have the opportunity to take a different path -- to pursue a new strategy for jobs and growth. Growth that is balanced. Growth that is sustainable."