China’s Hu warns of fragile global recovery

Saturday, 18 June 2011 01:23 -     - {{hitsCtrl.values.hits}}

ST. PETERSBURG, Russia (Reuters): The world economic recovery remains “slow and fragile” with the outlook uncertain, but China will promote its own rapid and stable growth, Chinese President Hu Jintao said on Friday.

Hu, addressing an economic forum in St. Petersburg, also said it was vital to press ahead with reforms to the international financial system that would give emerging markets a greater say in global governance.

While noting positive developments in the global economy, he said it was vital not to lose sight of the potential risks.

“More than two years after the international financial crisis the world economic recovery remains slow and fragile. The underlying impact of the crisis is still with us, and the outlook for the world economy is uncertain,” Hu said.

“In addition, international and regional hot spot issues keep flaring up. Uneven development between the north and south is more acute, and protectionism in various forms is resurfacing.”

Some economists -- backed up by recent downbeat data -- have warned that China, the world's fastest-growing major economy and second-largest after the United States, is set to slow substantially.

Hu rebuffed such concerns.

"China will ... advance reform and opening up, promote long-term, steady and fast economic growth and enhance social harmony and stability," he said.

Hu added that on the global front, emerging markets needed to be given a greater voice in the international financial system as countries emerge from the effects of the crisis.