China set for ‘aggressive’ economic steps - World Bank
JAPAN: China is likely to take “very aggressive” steps to kick start
its slowing economy after a once-in-a-decade leadership shuffle next
month, the World Bank’s newly installed chief said Thursday.
“In talking with the Chinese authorities, I’m completely convinced
that they understand exactly the nature of the problem and they are
taking every measure,” to boost growth, said Jim Yong Kim.
“They are going through a political change right now, and once the
political change is complete, my sense is that they’ll be very
aggressive in trying to restore growth,” he added.
Kim, appointed head of the World Bank in July, made the comments in
Tokyo at the annual meetings of the Bank and International Monetary
Fund, which has cut its growth forecasts for China, the world’s
second-biggest economy.
China has suffered the knock-on effect of a severe debt crisis in
Europe and a hobbled recovery in the United States, its two key export
markets, which have led to a slump in trade and contraction in
manufacturing activity.
Authorities have moved to spur the economy by slashing interest rates
twice in quick succession this year and cutting the amount of funds that
banks must keep in reserve three times since December in a bid to
encourage lending.
On Tuesday, the Washington-based Fund said the stimulus had failed to
deliver an expected boost, and it now expected Chinese growth of 7.8
percent this year and 8.2 percent in 2013.
That is down from a July estimate of 8.0 percent and 8.5 percent,
respectively.
AFP |