Hu: cautious on stimulus exits

Updated: 2010-06-28 09:32
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Hu: cautious on stimulus exits

Chinese President Hu Jintao attends a plenary session of the fourth summit of the Group of 20 (G20), in Toronto, Canada, June 27, 2010. [Xinhua/Fan Rujun]

TORONTO - Chinese President Hu Jintao laid out on Sunday a three-point proposal for promoting a strong, sustainable and balanced global economic growth.

While addressing the fourth G20 summit in Toronto, President Hu said in his speech titled "Work in unity for the future" that the world economy is gradually recovering with the help of the concerted efforts of G20 members and the entire international community.

However, he also warned that the recovery was unfirmly established, unbalanced, and still facing "quite many uncertainties," such as the expanding sovereign debt crisis, drastic exchange rates fluctuations of major currencies and persistent volatility in the international financial markets.

"All this shows that the deeper impact of the international financial crisis is yet to be overcome and systemic and structural risks in the world economy remain very serious," he said.

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Seeking to address these problems and materialize a strong and balanced growth worldwide, the president laid out a three-point proposal.

"First, we need to turn the G20 from an effective mechanism to counter the international financial crisis to a premier platform for advancing international economic cooperation," said the president.

Hu further elaborated on his expectations for a function-adjusted G20 framework.

"The complex world economic situation makes it necessary for the G20 to play a guiding role. We need to take a longer-term perspective and shift the focus of the G20 from coordinating stimulus measures to coordinating growth, from addressing short-term contingencies to promoting long-term governance and from passive response to proactive planning," he said.

He said that the G20 must act in a "cautious and appropriate" way concerning the timing, pace and intensity of an exit from the stimulus packages and consolidate the momentum of the world economic recovery.

The Chinese leader said G20 nations should strengthen coordination of macroeconomic policies among them, support countries hit by the sovereign debt crisis in overcoming the current difficulties.

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