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WASHINGTON, April 22 (Xinhua) -- The International Monetary Fund on Wednesday warned that the global economy was in "a severe recession" and the world output is projected to decline 1.3 percent this year, the deepest global recession since the Great Depression in 1930s. "The global economy is in a severe recession inflicted by a massive financial crisis and acute loss of confidence," said the IMF in its latest World Economic Outlook report. "All corners of the globe are being affected." EPICENTER OF CRISIS According to the report, the world economy is projected to decline by 1.3 percent in 2009 as a whole and to recover only gradually in 2010, growing by 1.9 percent. "Achieving this turnaround will depend on stepping up efforts to heal the financial sector, while continuing to support demand with monetary and fiscal easing," said the IMF. The advanced economies experienced an unprecedented 7.5 percent decline in real GDP during the fourth quarter of 2008, and output is estimated to have continued to fall almost as fast during the first quarter of 2009, according to the report. Although the U.S. economy may have suffered most from intensified financial strains and the continued fall in the housing sector, western Europe and advanced Asia have been hit hard by the collapse in global trade, as well as by rising financial problems of their own and housing corrections in some national markets. Emerging economies are suffering badly and contracted 4 percent in the fourth quarter in the aggregate. The United States, at the center of an intensifying global financial storm, will contract by 2.8 percent this year, said the IMF, adding that "the biggest financial crisis since the Great Depression has pushed the United States into a severe recession." Meanwhile, the euro zone economy will shrink by 4.2 percent this year and fall a further 0.4 percent in 2010, the IMF said, criticizing the bloc for weak public policy responses and coordination. In Japan, the IMF expects 2009 output to fall 6.2 percent, far worse than its January forecast for a 2.6 percent decline. China is expected to slow to about 6.5 percent this year, half the 13 percent growth rate recorded pre-crisis in 2007 but still a strong performance given the global context, according to the IMF. UNCERTAIN OUTLOOK The IMF warned the financial crisis remains acute. "The financial market stabilization will take longer than previously envisaged, even with strong efforts by policymakers," it said. Thus, financial strains in the mature markets are projected to remain heavy until well into 2010, and overall credit to the private sector in the advanced economies is expected to decline in both 2009 and 2010. Meanwhile, emerging and developing economies are expected to face greatly curtailed access to external financing in both years. In a semi-annual report Global Financial Stability Report (GFSR), which was released on Monday, the IMF said write-down on U.S.-originated assets to be suffered by all holders will be 2.7 trillion dollars, "largely as a result of the worsening base-case scenario for economic growth." Total expected write-downs on global exposures are estimated at about 4 trillion dollars, of which two-thirds will fall on banks and the remainder on insurance companies, pension funds, hedge funds, and other intermediaries. In the latest World Economic Outlook report, the IMF warned that the current outlook is exceptionally uncertain, with risks weighed to the downside. The crisis has hurt international trade, with volume expected to plunge 11 percent this year before eking out 0.6 percent growth in 2010. Consumer prices in developed countries were under pressure and would fall 0.2 percent in 2009. "Even once the crisis is over, there will be a difficult transition period, with output growth appreciably below rates seen in the recent past," said the IMF. BOLD POLICY The IMF called for its members to take new bold policy stimulus to jump-start their economies. "This difficult and uncertain outlook argues for forceful action on both the financial and macroeconomic policy fronts," said the IMF. Past episodes of financial crisis have shown that delays in tackling the underlying problem mean an even more protracted economic downturn and even greater costs, both in terms of taxpayer money and economic activity. "Policymakers must be mindful of the cross-border ramifications of policy choices," said the IMF. "Initiatives that support trade and financial partners will help support global demand, with shared benefits." In advanced economies, scope for easing monetary policy further should be used aggressively to counter deflation risks. Although policy rates are already near the zero floor in many countries, whatever policy room remains should be used quickly, according to the IMF. Emerging economies also need to ease monetary conditions to respond to the deteriorating outlook. However, in many of those economies, the task of central banks is further complicated by the need to sustain external stability in the face of highly fragile financing flows, the IMF warned. The 185-member organization also warned against the rising protectionism. "Greater international cooperation is needed to avoid exacerbating cross-border strains," said the IMF. "Coordination and collaboration is particularly important with respect to financial policies to avoid adverse international spillovers from national actions." "A slide toward trade and financial protectionism would be hugely damaging to all, a clear warning from the experience of 1930s beggar-thy-neighbor policies," it warned.
BEIJING, June 1 (Xinhua) -- Chinese Vice Premier Zhang Dejiang Monday called on local governments and government agencies to improve production safety and crack down on illegal practices. The number of accidents and casualties had fallen this year, Zhang said in a teleconference aimed to improve production safety. However, some industries still had potential dangers, he said. Zhang urged authorities to enhance work safety supervision and remove hidden dangers at work places to avoid accidents. Any illegalities, especially in major industries such as coal mining, construction, and fireworks production, must be eliminated.

BRUSSELS, May 7 (Xinhua) -- The European Union (EU) and China should work together to ward off potential surge of protectionism amid the global economic slump, Chinese Vice Premier Wang Qishan said on Thursday. "China and the EU should stand firm against any form of protectionism for the sake of a global economic recovery," Wang said in an opening remark at a high-level economic and trade dialogue between the EU and China, two major trading powers in the world. The EU is now China's largest trading partner, while China is the second largest of the EU. Trade volume between them grew to 425.58 billion U.S. dollars in 2008, an increase of 19.5 percent over the previous year despite the impact of the financial crisis, according to figures from China's customs authorities. Wang said the two sides have every reason to avoid protectionism, either for the urgent need to work out of the current crisis or due to the irreversible trend of globalization. Chinese Vice Premier Wang Qishan (C), Chinese Minister of Commerce Chen Deming (L) and Minister of Finance Xie Xuren attend the Second China-European Union High Level Economic and Trade Dialog at the EU headquarters in Brussels, capital of Belgium, May 7, 2009He warned that protectionism, featuring the pursuit of benefits for one country at the expense of others, would in the end protect nobody, but lead to retaliation and make the crisis even worse, which has been proved by the history. The world economy paid a heavy price for the prevalence of trade protectionism during the Great Depression in the 1930s, which resulted in the contraction of global trade by two thirds. As the world economy plunged into its first-ever recession since the Second World War in the wake of the financial crisis, there is an increasing risk that more governments would resort to protectionist measures. For the EU, there has been more frequent use of anti-dumping measures against Chinese products, which is a major concern of the Chinese side. Wang urged the EU to take full account of China's concern and make real efforts to remove trade and investment barriers, adding the economies of China and the EU have much to offer each other and the two-way trade holds a huge potential. Chinese Vice Premier Wang Qishan speaks during the Second China-European Union High Level Economic and Trade Dialog at the EU headquarters in Brussels, capital of Belgium, May 7, 2009. He in particular called on the EU to relax restrictions on the transfer of advanced green technology to China so as to promote sustainable development. "The EU has an edge in new energy, energy-efficient building and waste recycling. There is a vast market in China for those green investments," Wang said. For the Chinese part, Wang said China will continue to send buying missions to Europe and encourage Chinese companies to increase procurement and imports from the continent as a concrete move to boost trade with the EU in the difficult times. In February, a big delegation of Chinese companies visited Germany, Switzerland, Spain and Britain. They struck 13.6-billion-dollar deals with their European counterparts. EU Trade Commissioner Catherine Ashton, who co-chaired the two-day dialogue with Wang, said the 27-nation bloc would remain committed to free trade. "We stand by our commitments to free trade and resist call of protectionism," Ashton said, adding everyone would benefit from further opening up. Ashton said the EU and China, as two key players in the world economy, should work together to meet global challenges, including a global free trade agenda. "What we do have an impact on the global economy. We have common interest to maintain openness, especially moving forward the Doha Round of world trade talks," she said. Her view was echoed by Wang, who called for joint efforts with the EU to help the world economy recover. "The urgent task now is to take decisive measures to kick-start the world economy," Wang said. "The EU is the world's largest economy, while China is the largest developing country. The economic and financial situation in the EU and China has a direct impact on the world economic recovery and financial stability." The high-level economic and trade dialogue, which is held annually between the EU and China, kicked off in Brussels on Thursday. The two-dialogue brought together key policy makers from both sides, including Wang and EU Trade Commissioner Catherine Ashton. A further eight EU Commissioners and a total of 12 Chinese ministers or vice-ministers are participating in the far-reaching talks, which cover a series of topics, such as trade, investment, small and medium-sized companies, customs cooperation, sustainable development, product safety and intellectual property rights. It is the second time that the EU and China hold the high-level economic and trade dialogue, which was agreed at a Sino-EU summit in November 2007. The first meeting was held in Beijing in April 2008.
EDINBURGH, May 9 (Xinhua) -- Chinese Vice Premier Wang Qishan said Friday during a visit to Scotland that China hopes to strengthen cooperation with Scotland, especially in the areas of education, culture, tourism and finance. Wang, who is on an official visit to Britain, spoke during a meeting with Alex Salmond, Scotland's first minister. Both sides praised the friendship between China and Scotland and expressed a readiness to strengthen their cooperation as part of an effort to promote the all-round strategic partnership between China and Britain. During the meeting, the two also exchanged views on how to tackle the global financial crisis. "Currently we should further strengthen confidence in the market and recover the functions of the financial market as soon as possible," Wang said. After the outbreak of the Asian financial crisis, China adopted a series of measures that pulled it through the trouble and helped to maintain the stability of the financial market, Wang said. Salmond spoke highly of the economic stimulus packages arranged by the Chinese government to tackle the current financial crisis. Wang arrived at Edinburgh on Friday after a visit to the Europe Union
BEIJING, July 4 (Xinhua) -- Former Chinese Vice Premier Zeng Peiyan on Saturday called for the whole world to work together to seek reforms in financial supervision, boost economic restructuring and build a green economy. The present financial crisis has revealed deep-rooted structural imbalance within the traditional economy and developing pattern, and the world should focus on solving such issues in the post-crisis era, he told Xinhua during an exclusive interview at the Global Think Tank Summit. The international community should jointly improve the global financial supervision system with generally-accepted regulatory standards to monitor and intervene on possible systematic risks as early as possible, Zeng said. The international currency system should be reformed into a steady, foreseeable and diversified one, and it is necessary to set supervision on the financial stability of nations of major reserve currencies, he told Xinhua. It would take a long time to carry out the global economic restructuring and solve the imbalances between consumption and savings, he said, adding that such a move needs efforts from both developed countries and developing ones. Zeng called on developed countries to help developing countries by improving their external environment for economic development, as developing countries have already become the biggest victims of the present crisis. Zeng also called for more international cooperation in building a green economy, as developing countries need technical and financial support from developed countries to avoid wasting resources and destroying the environment while seeking economic revival. The summit, which concluded on Saturday, is organized by the China Center for International Economic Exchanges (CCIEE), a non-governmental research and consulting organization created this March, with Zeng as its director. The three-day summit had attracted over 900 scholars, experts and business leaders from all over the world, including former President of the European Commission Romano Prodi and former Secretary of State of the United States Henry Kissinger
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