Thursday, October 9, 2008

World Bank chief: China's economic growth important to global economy

World Bank President Robert B. Zoellick said on Wednesday the growth of China's economy is "very important" to the global economy, which is entering a major downturn after five years of strong economic growth.

"China's economy, up to this point, has been helping offer an alternative growth. This is very important to the global economy," said Zoellick.

However, what are happening in the U.S. in these two months will lead to a worldwide economic slowdown, and that will impact China as well, he said.

"Fortunately for China, it has very strong current account position as well as budgets position," said the World Bank chief.

He said he endorsed Justin Lin's opinion about China's contribution to the World economy, referring to Lin's recent interview with Xinhua.

"I think that in the global context, Justin Lin made a point that I endorse, that if china could expand domestic demand, particularly in the consumption side, that will help strengthen the overall global economy," said Zoellick.

Justin Lin, chief economist and senior vice president for Development Economics at the World Bank, told Xinhua in an exclusive interview that China should stimulate the domestic demand to cope with the current financial crisis.

Lin, the first chief economist of World Bank from a developing country, said China's stable and fast economic development is itself one of the contributions to the world economy.

"The stable and rapid economic development in China not only boosts China's export, but also provides a bigger market for the rest of the world," he said.


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