China is promoting priority areas and guiding principles designed for structural reform of G20 members, according to Finance Minister Lou Jiwei.
This is vital for achieving the goal of raising the G20’s GDP by at least 2 percent by 2018, the minister said.
Lou said G20 finance ministers and central bank governors are also pushing forward organizational reform of the International Monetary Fund and the World Bank. They have reached a consensus on global cooperation.
“Global economic growth continues to be slow, and policymakers have realized that short-term stimulus does not work well and that structural reform can play an important role,” Lou said.
Speaking in Beijing on Aug 26, he said deepening structural reform can improve productivity and potential growth, driving medium- and long-term growth of the global economy.
“We have confirmed nine priority areas and 48 guiding principles for G20 structural reforms through this year’s finance meetings, which will be important for achieving the G20 GDP goal set in Brisbane.”
G20 leaders set the goal of lifting GDP by at least 2 percent by 2018 in the Australian city two years ago.
China took over the G20 presidency on Dec 1.
Lou said G20 finance ministers and central bank governors are also perfecting global economic governance to enhance economic vitality such as by pushing forward organizational reform of the IMF and the World Bank.
“Although there are some voices going against the tide of globalization, G20 finance ministers and central bank governors have reached a consensus on global cooperation,” Lou said.
He said they have promised they will use all policy tools－monetary, fiscal and structural－individually and collectively to respond to risks, boost confidence and strengthen economic growth.
They also reaffirmed that they will refrain from competitive devaluations, resist all forms of protectionism, consult closely on exchange markets, and prepare well for potential risks caused by Brexit, the refugee problem and terrorism, Lou said.
Zhou Xiaochuan, governor of the People’s Bank of China, said last month that the G20 should remain committed to building an open, strong and resilient financial system.
Lou said China’s economy is still the “driver” and “anchor” of the global economy.
“In 2015, China contributed roughly 30 percent to global economic growth, and the contribution rate is expected to remain at a relatively high level this year,” he said.
The G20 Leaders Summit will be held in Hangzhou, Zhejiang province, on Sept 4 and 5.