Rich nations with more duty in global economy
(Xinhua)
Updated: 2005-04-17 10:39

The major industrial countries should assume the responsibility for global economic adjustment commensurate with their economic positions, Deputy Governor of the People's Bank of China Li Ruogu said on Saturday.

In a statement made at the 11th meeting of the International Monetary and Financial Committee, Li Ruogu said that there are various risks that might affect stable global economic growth although the global economic growth has remained strong since last fall.

"In the near term, we need to pay close attention to three risks: disorderly adjustment to the US dollar exchange rate, sudden rise in long-term interest rates and further increases in oil prices," he said.

He also said that the world economy continues to face challenges in medium term -- poor fiscal conditions, slow progress on structural reforms for many countries and unbalanced economic growth across regions.

"These factors not only affect macroeconomic stability in the medium term but also create tremendous pressures for short-term economic trends," Li said.

The Chinese official called on all countries to strengthen their capacities for cooperation and dialogue and to join in striving to bring about global economic stability and prosperity.

The major industrial countries in particular should assume the responsibility in assuring the world economic growth, he said.

"They should avoid resorting to trade protections and sanctions, which will subvert, and possibly even ruin, the global production and trade systems just now taking shape after many difficulties," Li said.

To improve the sustainability of their domestic economies and the soundness of their economic policies, the main industrial countries should begin with fiscal consolidation, increase domestic savings and speed up structural reforms, he said.

The International Monetary and Financial Committee is the policy-making body of International Monetary Fund (IMF) which began its two-day spring meeting on Saturday.

Close