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WB Chief: China's policy to aid int'l recovery
(Xinhua)
Updated: 2009-09-02 23:04

WB Chief: China's policy to aid int'l recovery
World Bank Group President Robert B. Zoellick attends a news conference in Beijing September 2, 2009. [Agencies]WB Chief: China's policy to aid int'l recovery

BEIJING: World Bank Group President Robert B. Zoellick said Wednesday China's decision to pursue proactive fiscal and moderately easy monetary policies would benefit the economic recovery of both China and the world.

China should not change the orientation of its stimulating policies too early as uncertainties still existed for the country's economic recovery, Zoellick said during his third official visit to China.

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China has steered a steady course through the stormy seas of the economic crisis, said Zoellick. "Through its massive stimulus and strong lending program, China has contributed to the early signs of a global recovery by keeping its growth rate up."

Zoellick projected that Chinese economy would grow by nearly 8 percent in 2009.

The World Bank raised its forecast for China's economic growth in 2009 to 7.2 percent in June from an earlier forecast of 6.5 percent.

With China's economic growth close to 8 percent and signs of stabilization in many countries in Asia and around the world, the chances of a truly global recovery have increased measurably, said Zoellick.

The priority for the global economy was still to adopt expansive fiscal and monetary policies to achieve a real recovery, not inflation, he said.

Zoellick said the international financial crisis was developing in a wave-like fashion, so it was possible for new problems to rise in the United States in such fields as credit card debt, consumer loans and the still sluggish real estate market.

"The World Bank need to maintain close attention to giving the recovery a boost," he said.

Zoellick said that he has talked with China Investment Corporation about the potentials of jointly invest in sub-Sahara Africa and Latin America.

But no decision has been made so far, he said.

Zoellick said that the World Bank will further increase its loans to developing countries to expand their domestic demand.

In the last financial year dating from June 30, 2008 to June 30, 2009, the World Bank lent US$59 billion, up 56 percent from a year ago, Zoellick said.

 

 

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