Business / Hangzhou G20

Business bignames diagnose world economy, praise China's role

(Xinhua) Updated: 2016-09-04 21:07

HANGZHOU - Business leaders from across the world gathered here over the weekend to ferret out the ills of the world economy and work out prescriptions to cure them.

At a business summit known as B20 on the sidelines of the 11th leaders' meeting of the Group of 20 (G20) major economies, the star-studded lineup also spoke highly of China's contribution to promoting world economic recovery and sustainable development.

Describing the global growth rate as "too low," International Monetary Fund (IMF) Managing Director Christine Lagarde said Saturday that she is not optimistic about the prospects of recovery.

The coming year might register the lowest growth rate since the 2008 financial crisis, she warned, suggesting that besides monetary tools, fiscal and structural reform measures should also be adopted to realize truly sustainable development of the global economy.

Meanwhile, Lagarde recognized China's pivotal role in revitalizing the global economy and its continued efforts in deepening relevant reforms, and expected China to make new positive contributions in such areas as investment and trade.

In the eyes of Jim Yong Kim, president of the World Bank, the G20 Hangzhou summit has laid special emphasis on the topics of inclusive and green finance, which are of vital importance.

Green finance plays an important role in solving climate change and other environmental problems, he said, noting that China, having granted an ever-growing number of ordinary people access to financial services, leads the world in inclusive finance.

Commenting on a report of policy recommendations the B20 has presented to G20 leaders, World Trade Organization (WTO) Director-General Roberto Azevedo pointed out that the document will have a crucial impact on the growth of world trade.

He called on all members of the WTO to endorse as soon as possible the Trade Facilitation Agreement reached by the organization, join hands to combat the rising trend of protectionism, and bring the general public more benefits from global trade.

For his part, UN Industrial Development Organization (UNIDO) Director-General Li Yong also emphasized green finance and inclusive development as well as relevant policies, which he said are crucial to the future global economic development.

Speaking highly of the B20 report's inclusion of the issue of small- and medium-sized enterprises (SMEs), Li suggested that governments create good conditions for the healthy development of SMEs.

Focusing on the employment dimension, President Daniel Funes de Rioja of the International Organization of Employers noted Sunday that due to the impact of globalization, automation and other factors, global unemployment reached 197 million in 2015, up 27 million from the pre-crisis level, and that the situation remains challenging now.

Secretary-General Angel Gurria of the Organization of Economic Cooperation and Development (OECD) noted in his Saturday appearance that the sluggish world economy now faces three vicious circles, namely a low-growth trap, a low-interest-rates trap and a circle of inequality resulting from all sorts of unfavorable factors.

Offering a three-pronged solution that consists of fiscal stimulus, structural reform and inclusive growth, he expressed confidence that the international community, through cooperation, can surely find a roadmap for future development and release the huge potential of the global economy.

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