Minister forecasts 7% growth for the next four to five years

China's transition to slower but more sustainable growth was recognized by G20 finance ministers and central bank governors over the weekend, when they pledged to take decisive action to keep economic recovery on track.

China's economic situation is still within expectations, and GDP growth is predicted to remain at about 7 percent in the next four to five years, Finance Minister Lou Jiwei said on Saturday.

Lou was speaking after the two-day G20 Finance Ministers and Central Bank Governors Meeting in Ankara, the Turkish capital.

Lou identified the slower growth status as the "new normal", which will be a "painful" period for the country as it shifts to a consumption-driven growth pattern from one driven by investment and exports. The restructuring reforms are planned to be completed by 2020.

"But China's growth still contributed 30 percent to global growth, even as it slowed to 7 percent amid the deleveraging process," he said.

Turkish Deputy Prime Minister Cevdet Yilmaz said on Saturday at a news conference in Ankara, "G20 finance ministers and central bank governors have talked about the economic problems in China, and we are not pessimistic about China keeping to 7 percent growth in the future."

Saudi Arabia's central bank Governor Fahad al-Mubarak said in an interview with Bloomberg Television in Ankara: "The issue with China is overblown. We're confident that China is on the path of reform."

The G20 meeting took place amid unexpected volatility in financial markets, with commodity prices dropping and some currencies depreciating.

Zhou Xiaochuan, governor of the People's Bank of China, the country's central bank, stressed that the recent market volatility will not stop reforms.

"The yuan's exchange rate against the US dollar is becoming stable, the stock market correction is almost in place and the financial market is expected to be more stable," he said.

The yuan was adjusted against the US dollar by about 3 percent on Aug 11 when the People's Bank of China reformed the daily reference rate.

The G20 finance ministers and central bank governors released a statement after the meeting, vowing to take measures to boost economic recovery and avoid persistent exchange rate misalignments.

Christine Lagarde, managing director of the International Monetary Fund, said the downside risks for the global economic outlook have increased, as growth remains moderate and uneven.

She called on the G20 to provide an "enabling" economic environment for developing countries as they pursue their sustainable development goals.

chenjia1@chinadaily.com.cn

(China Daily USA 09/07/2015 page1)