Dec. 1 (Bloomberg) -- Zhu Guangyao, a vice Chinese finance minister, said the world is in a “grimmer and more challenging” situation than during the global financial crisis that started in 2008. He spoke at an economic conference in Beijing today.
On the global economic situation:
“The world economy is facing severe challenges. The most prominent risk is that the world recovery halts. Major developed economies may risk recession.
“There has been a notable increase in uncertainties and unstable factors in the world economy, challenging China’s effort to maintain steady and relatively fast growth. Therefore we must closely monitor changes in the world economy, especially China’s two largest trading partners -- Europe and the U.S.
“The current crisis is grimmer and more challenging than the global financial crisis triggered by the Lehman Brothers bankruptcy in 2008. At that time, the world economy maintained growth, and world leaders, especially G-20 countries, rolled out massive fiscal stimulus and monetary measures in a timely manner, and adopted other counter-cyclical economic policies so that the crisis was to a large extent contained and economic recovery was achieved in a relatively short time.
“Now, however, some countries face very difficult fiscal conditions and some economies are contracting. The room for monetary policy maneuvering is also limited.
“Under such circumstances, we must make policies more focused, flexible and preemptive and manage the pace and strength of macro-economic controls. Countries around the world should work together to tackle the difficulties.
“The key is to turn policy pledges into detailed and appropriate measures, and to win more trust from the market because market confidence is very important.
“So the most imperative task now is to try our best to stimulate global economic growth and to direct world growth back onto the right track.”
--Li Yanping. Editors: Nerys Avery, John Liu
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