Global Times - WB president lauds stimulus measures

WB president lauds stimulus measures

Source: Global Times
[01:22 September 03 2009]
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World Bank president Robert Zoellick speaks at a press briefing during a visit to Beijing. Photo: Image China

By Zhao Qian

World Bank President Robert Zoellick yesterday praised China's government for its handling of the economic crisis while noting that expansionary fiscal and monetary policies are still needed to guarantee a solid recovery.

"China's actions have helped prevent the global crisis from getting worse, and I agree with [China's] leaders that it is too early to roll back fiscal and monetary measures," Zoellick said at a press conference yesterday during his third official visit to the country.

China's trading partners are benefiting from the rise in domestic demand and that is helping to strengthen confidence across the world, he noted.

Responding to questions about the potential for inflation in the country, Zoellick said, "I am not worried about inflation now."

He suggested that the priority for the global economy was still to adopt expansionary fiscal and monetary policies to achieve a real recovery.

When asked whether the World Bank has changed its prediction about China's economic growth, Zoellick said that eight percent growth was likely.

The World Bank's quarterly update on China released in June raised its GDP growth prediction from 6.5 percent in its update in March to 7.2 percent, due to expansionary fiscal and monetary policies that have kept the economy growing.

GDP rose 7.9 percent in the second quarter, up from the same quarter in 2008, and a 1.8 percentage point jump from the first quarter of this year, according to the Chinese National Bureau of Statistics.

Chinese Premier Wen Jiabao discussed both China's and the world's economy with Zoellick Tuesday.

The World Bank leader also added that he did not believe that China would adopt further stimulus measures.

Zoellick begins a visit to Anhui Province today to inspect World Bank Group-supported projects in forestry, water conservation and highway development.