Home / Business / News Tools: Save | Print | E-mail | Most Read | Comment
G8 leaders say world economy faces risks
Adjust font size:

Leaders from the Group of Eight (G8) rich countries said on Wednesday that the world economy still faces significant risks despite signs of stabilization.

"While there are signs of stabilization, including a recovery of stock markets, a decline in interest rate spreads, improved business and consumer confidence, the situation remains uncertain and significant risks remain to economic and financial stability," the leaders said in a declaration concluding their first-day meeting at a summit in the central Italian town of L'Aquila.

The financial crisis, which broke out last autumn, has dragged the global economy in a deep recession that the world has never seen since the World War II, prompting governments to take unprecedented and concerted action to ensure recovery and repair financial systems.

In a forecast released Wednesday, the International Monetary Fund (IMF) sounded upbeat about a recovery next year, saying global economy is starting to pull out of the recession.

It was estimated that the world economic growth will recover to 2.5 percent in 2010, rather than the 1.9 percent predicted in a previous forecast.

However, the IMF still expects the global economy to contract 1.4 percent this year, signaling the recovery would be sluggish.

"The global economy is beginning to pull out of a recession unprecedented in the post-World War II era, but stabilization is uneven and the recovery is expected to be sluggish," the Washington-based institution said.

In face of significant risks, the G8 leaders pledged to take necessary steps, including further stimulus measures, to return the global economy to a strong, stable and sustainable growth path, adding fiscal sustainability in the medium term should also be ensured.

"We will take, individually and collectively, the necessary steps to return the global economy to a strong, stable and sustainable growth path, including continuing to provide macroeconomic stimulus consistent with price stability and medium-term fiscal sustainability," they said.

The leaders also agreed on the need to prepare appropriate "exit strategies" for unwinding the extraordinary policy measures taken to respond to the crisis once the recovery is assured.

(Xinhua News Agency July 9, 2009)

Tools: Save | Print | E-mail | Most Read Bookmark and Share
Comment
Pet Name
Anonymous
China Archives
Related >>
- G8 leaders kick off summit on economic crisis
- G8 summit: What's on the agenda
- Test for the power of G8-plus-5
June 7 Tokyo 2nd China-Japan High-Level Economic Dialogu

June 30 Shanghai 2009 Automotive Engine Technology Seminar

September 8-12 Xiamen China Int'l Fair for Investment and Trade
- 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?