‘RECOVERING BUT STILL FRAGILE’
China premier says structural reforms, not quantitative easing, will support growth
THE world economy is showing positive signs but is still fragile and countries should rely on structural reforms, not quantitative easing, to support growth, said Chinese Premier Li Keqiang on Tuesday.
Li, who met with the heads of global bodies, including International Monetary Fund managing director Christine Lagarde and World Bank president Jim Yong Kim, here, said countries should maintain free trade.
“There are increased positive factors in the global economy. But, at the same time, fragility persists and unstable and uncertain factors are increasing,” Li told a news conference with the heads of international agencies.
“Free trade is a good medicine for resolving problems. Through free trade, we can resolve many problems in the difficult recovery, help companies transform and give consumers more choices,” he said.
Turning to China, Li said the economy would remain steady and continue to improve.
China’s economy grew 6.9 per cent in the first half, defying expectations of a slowdown and putting the country on pace to easily meet its growth target of around 6.5 per cent.
“Based on the growth trend in recent months, the economy will continue to maintain the trend seen in the first half,” he said.
Li also reiterated China’s pledge not to resort to competitive currency devaluation.
At the official local close on Monday, the onshore spot yuan gained 6.5 percent so far this year, about the same percentage loss it suffered last year. Reuters