Key ar­eas for G20 eco­nomic re­forms pro­moted

China Daily (USA) - - FRONT PAGE - By CAI XIAO in Bei­jing caix­iao@chi­

China is pro­mot­ing pri­or­ity ar­eas and guid­ing prin­ci­ples de­signed for struc­tural re­form of G20 mem­bers, ac­cord­ing to Fi­nance Min­is­ter Lou Ji­wei.

This is vi­tal for achiev­ing the goal of rais­ing the G20’s GDP by at least 2 per­cent by 2018, the min­is­ter said.

Lou said G20 fi­nance min­is­ters and cen­tral bank gov­er­nors are also push­ing for­ward or­ga­ni­za­tional re­form of the In­ter­na­tional Mon­e­tary Fund and the World Bank. They have reached a con­sen­sus on global co­op­er­a­tion.

“Global eco­nomic growth con­tin­ues to be slow, and pol­i­cy­mak­ers have re­al­ized that short-term stim­u­lus does not work well and that struc­tural re­form can play an im­por­tant role,” Lou said.

Speak­ing in Bei­jing on Fri­day, he said deep­en­ing struc­tural re­form can im­prove pro­duc­tiv­ity and po­ten­tial growth, driv­ing medi­u­mand long-term growth of the global econ­omy.

“We have con­firmed nine pri­or­ity ar­eas and 48 guid­ing prin­ci­ples for G20 struc­tural re­forms through this year’s fi­nance meet­ings, which will be im­por­tant for achiev­ing the G20 GDP goal set in Bris­bane.”

G20 lead­ers set the goal of lift­ing GDP by at least 2 per­cent by 2018 in the Aus­tralian city two years ago.

China took over the G20 pres­i­dency on Dec 1.

Lou said G 20 fi­nance min­is­ter sand cen­tral bank gov­er­nors are also per­fect­ing global eco­nomic gov­er­nance to en­hance eco­nomic vi­tal­ity such as by push­ing for­ward or­ga­ni­za­tional re­form of the IMF and the World Bank.

“Although there are some voices go­ing against the tide of glob­al­iza­tion, G20 fi­nance min­is­ters and cen­tral bank gov­er­nors have reached a con­sen­sus on global co­op­er­a­tion,” Lou said.

He said they have promised they will use all pol­icy tools — mon­e­tary, fis­cal and struc­tural — in­di­vid­u­ally and col­lec­tively to re­spond to risks, boost con­fi­dence and strengthen eco­nomic growth.

They also reaf­firmed that they will re­frain from com­pet­i­tive de­val­u­a­tions, re­sist all forms of pro­tec­tion­ism, con­sult closely on ex­change mar­kets, and pre­pare well for po­ten­tial risks caused by Brexit, the refugee prob­lem and ter­ror­ism, Lou said.

Zhou Xiaochuan, gov­er­nor of the Peo­ple’s Bank of China, said last month that the G20 should re­main com­mit­ted to build­ing an open, strong and re­silient fi­nan­cial sys­tem.

Lou said China’s econ­omy is still the “driver” and “an­chor” of the global econ­omy.

“In 2015, China con­trib­uted roughly 30 per­cent to global eco­nomic growth, and the con­tri­bu­tion rate is ex­pected to re­main at a rel­a­tively high level this year,” he said.

The G20 Lead­ers Sum­mit will be held in Hangzhou, Zhe­jiang prov­ince, on Sept 4and5.

Lou Ji­wei, fi­nance min­is­ter

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