Dec. 1 (Bloomberg) -- The global economy is facing a “grimmer and more challenging” situation than the financial crisis in 2008 because countries face relatively more constraints in fiscal stimulus and monetary policy, Vice Finance Minister Zhu Guangyao said at an economic conference in Beijing today.
Policy flexibility, strength and timing are key for the current economic environment, he said. Governments must properly gauge market reaction and “fulfill” their policy pledges to boost credibility in the eyes of market participants, he said.
Governments should also retain growth and bring the world economy back on track, he said.
China hopes Europe will properly address its debt crisis and the U.S. its deficit and government finance problems to stabilize growth, Zhu said. This will benefit world growth including China, he said.
Zhu also urged countries to refrain from intensifying protectionism in difficult times and avoid politicizing economic issues.
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