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G20 Summit laid solid foundations

Wang Yanfei and Chen Weihua
Updated: Oct 10,2016 7:37 AM     China Daily

The proposals from this year’s G20 Summit have laid a solid foundation and support sustainable global economic growth, according to Finance Minister Lou Jiwei.

He urged G20 members to keep strengthening coordination in macroeconomic policy to implement the consensus reached at the Hangzhou summit in September, which he described as “a complete success”.

Lou made the remarks last week at a meeting for G20 finance ministers and central bank governors in Washington, where talks covered the challenges facing global economic growth, including money laundering and tax avoidance.

The minister said China hopes the G20 agenda next year, and in the future, will implement the outcome of the Hangzhou summit.

Major outcomes during China’s G20 presidency include the promotion of green finance and efforts to promote structural reforms at a time when global economic recovery is grappling with challenges such as a greater emphasize on monetary policies, Jacob Frenkel, chairman of JPMorgan Chase International, said.

The IMF last week forecast global growth to hit 3.1 percent in 2016 and 3.4 percent in 2017, the same as its forecast in July. A major uptick is expected to be driven by emerging markets, where efforts made by China are part of reasons for optimism, according to Christine Lagarde, the IMF managing director.

The report predicted that China’s economy would grow 6.6 percent this year and 6.2 percent in 2017.

Marc Uzan, executive director of Reinventing Bretton Woods Committee, said, “China is taking the lead to implement structural reform.”

Liu Xiaochuan, head of Shanghai University of Finance and Economics’ China Institute of Public Finance, said China is stepping up efforts to close loopholes that hamper medium-to-long-term growth, such as new rules to cool down the housing market and prevent speculative behavior.

“China is laying a good foundation for global collaboration,” said Cao Yuanzheng, chief economist at Bank of China. “But there is much more to be discussed, ... as more economic spillover and a lack of policy coordination pose threats to economic recovery.”