Press Release: IMF First Deputy Managing Director John Lipsky Concludes Visit to China
March 21, 2010Press Release No. 10/104
March 21, 2010
Mr. John Lipsky, First Deputy Managing Director of the International Monetary Fund (IMF), issued the following statement today in Beijing:
“It has been a great pleasure for me to attend the China Development Forum in Beijing today. I benefited greatly from discussions on challenges to global growth and China's role in the global economy. I noted that fiscal and monetary policies played a critical role in supporting economic recovery. Thanks to these efforts, we now expect global growth to exceed 4 percent this year and next. One key concern we discussed was fiscal policy challenges in the post-crisis world.
“I pointed to the need to remain vigilant in three critical areas. First, fiscal policy should be geared to ensure that the recovery becomes firmly entrenched. For China, for example, it is fully appropriate to maintain fiscal stimulus through the course of this year while seeking to rein in rapid loan growth. Second, advanced economies in particular need to substantially raise their structural primary balances to lower their debt ratios to more sustainable levels.
“Finally, fiscal policy has an important role to play in global rebalancing and should be used actively to reduce excessive current account deficits and surpluses. I have full confidence the world will meet these challenges with firm resolve and continued international cooperation.”