Home / Business / News Tools: Save | Print | E-mail | Most Read | Comment
IMF: China's stimulus plan a huge contribution to the world
Adjust font size:

Against backdrop of the world's financial crisis, China will play a vital role in world's economic recovery, said Murilo Portugal, Deputy Managing Director of the International Monetary Fund (IMF) on Saturday in Beijing.

"I think China's role is very important. Its fast growth has already made important contribution to the world economy, and it will continue playing that vital role in world's economic recovery," Portugal said on the first day of the three-day China Economic Forum 2009.


Murilo Portugal, Deputy Managing Director of the International Monetary Fund (IMF), delivers a speech at the China Economic Forum in Beijing, capital of China, March 21, 2009. [Xinhua] 

China's financial policy has long been very self-regulated and prudent. Besides, China has large quantity of foreign exchange reserves and debts equaling to 20% of its GDP. Based on that, China can make great contribution to the world economic recovery, Portugal added.

He went on to say that the economic stimulus plan that China unveiled last November, stipulating that the investment from 2008 to 2010 will equal 13% of its GDP, is undeniably a huge contribution to the world growth.

Portugal said that he is confident that China will achieve high positive growth this year though the growth rate will lower than last year.

China has announced a 4 trillion-yuan (585 billion US dollars) two-year economic stimulus package to boost growth and domestic demand, 1.18 trillion yuan of which will be funded by the central government.

The stimulus package plan has four major components, including large-scale government spending, industrial restructuring and rejuvenation, scientific research and social safety net.

Economic recovery depends on effective measures

The IMF predicted that world economic recession will further deepen in 2009 with world's per capita GDP probably dropping 2% or even lower, and world's total GDP also slumping and other related indexes further going down, Portugal said in his speech at the forum.

He said that the economic recovery, to a large extent, depends on whether the governments of different countries can take effective measures to reform their financial institutions and systems.

He added that if the financial and monetary conditions were improved, then the world would jump out of the current crisis at an earlier date. If the signs of recovery could appear in the second half of this year or in this summer, then the world could gradually walk out of this financial crisis.

In another report, the IMF said on Thursday that the world economy is expected to contract in 2009 for the first time in 60 years as advanced economies will shrink sharply.

1   2    

Tools: Save | Print | E-mail | Most Read Bookmark and Share
Pet Name
China Archives
Related >>
- Lend less to IMF, China cautioned
- Increasing contribution to IMF not matter of a single country
- IMF: world economy to shrink 'below zero' this year

Apr. 11-12, Beijing The Fifth (2008) 'Gold Prize of Round table'of Chinese Boards of Listed Company
Apr. 17-19, Hainan The Boao Forum for Asia Annual Conference 20
Apr. 20-23, Beijing Green Transformation: Forcast New Business Culture
Apr. 27-28, Beijing China Institute Executive Summit

- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?