A top Chinese banker said Beijing is "fully prepared" for a currency war as he urged the world to abide by a consensus reached by the G20 to avert confrontation, state media reported Saturday.

Yi Gang, deputy governor of China's central bank, issued the call after G20 finance ministers last month moved to calm fears of a looming war on the currency markets at a meeting in Moscow.

Finance Minister Jim Flaherty on Friday blamed Canada's lower than expected economic growth on "weakness in the global recovery" as he vowed to stay the course to a balanced budget in 2015.

Canada's economy grew 1.8 percent last year, slightly less than the central bank's forecast and down from 2.6 percent in 2011, the government statistics agency announced earlier.

President Barack Obama has reluctantly ordered an $85 billion austerity drive that could slow the U.S. economy and slash jobs, after blaming Republicans for refusing to stop the "dumb" spending cuts.

Obama complied with his legal obligations and initiated the automatic, across-the-board cuts in domestic and defense spending Friday, following the failure of efforts to clinch a deal with Republicans on cutting the deficit.

Official data Friday painted a far from encouraging picture of the European economy, with unemployment running at record and "unacceptable" highs in the eurozone while inflation fell sharply, highlighting the weakness of consumer demand.

Separately, a closely followed manufacturing survey showed the eurozone remained in the doldrums for a 19th consecutive month in February, although it also noted some signs of increased export demand -- a key growth driver.

Greece could avoid slashing wages and pensions more to reduce its deficit if it steps up tax collection, the International Monetary Fund said Thursday.

"If Greece can do a better job of collecting taxes, then the government should be able to avoid further wage and pension cuts," IMF spokesman Bill Murray said at a news conference.

EU president Herman van Rompuy warned Thursday that Britain will struggle to win support for its plans to renegotiate its membership of the European Union, and said that trying to exit the bloc could prove costly.

In a speech in London, Van Rompuy urged Britain to stay inside the 27-member group, saying it had a role to play in reforming the union and would have a stronger voice in world affairs than if it went it alone.

Tourists and business people seeking visas to visit the United States could face even longer waits at already swamped U.S. embassies if severe budget cuts kick in at the State Department.

It was increasingly apparent that no legislative solution will be ready before automatic budget cuts -- the so-called sequester -- kick in on Friday, forcing a wide range of government agencies to trim services.

The United States was braced for $85 billion in budget cuts due to hit Friday in a self-inflicted wound brought on by deep ideological antipathy between President Barack Obama and Republicans.

The cuts, which could cost a million jobs, will slice public services and threaten an economy that is already barely growing, and arrive with both sides agreeing on only one thing -- that the other is to blame.

EU member states must cover a 16-17 billion euros shortfall in this year's budget before talking about approval for their hotly contested 2014-20 spending plans, European Parliament head Martin Schulz warned Thursday.

The 2013 budget shows a deficit of 16 to 17 billion euros and "deficits are forbidden at the EU level, Schulz said in Dublin at a press conference with Irish Prime Minister Enda Kenny.

The head of Syrian Air on Thursday invited foreign airlines to resume flights to Damascus, offering discounts and giving assurances that security has been restored on the airport road.

"I call on airlines to resume their flights and operations through Damascus International Airport, as well as Latakia airport (western Syria) and Qamishli airport (in the east)," Ghaida Abdel Latif told Agence France Presse.