BEIJING — China can boost global economic growth by pressing ahead with reforms to promote domestic consumption and reduce reliance on exports and investment, World Bank President Robert Zoellick said Monday.
Communist authorities have said repeatedly they want more self-sustaining growth based on domestic consumption. But they have made little progress, and investment as a share of China’s economy rebounded after Beijing launched a stimulus based on public works spending following the 2008 global crisis.
Zoellick’s comments came amid mounting fears the United States might be headed back into recession after the Labor Department reported Friday the economy added no jobs in August, its worst employment report in 11 months.
Weakening global demand might add to Beijing’s urgency in trying to promote retail spending and other domestic consumption. But analysts say the many steps required to do that will take time, such as creating more government-financed health care to reduce the need for families to save so much to pay for emergencies.
China’s spending on new factories and other investment has accounted for more than 40 percent of its economic output over the past decade – several times the level of the United States, Japan and other major economies. It rose close to 50 percent in 2009 due to stimulus spending, according to the International Monetary Fund.
- US Is Playing With Fire On Debt Limit, Says World Bank Chief
- Bank Of America Sells Half Of Its China Bank Stake
- Vice President Joe Biden heads to China under debt cloud
- World Car Population Surpasses 1 Billion
- Jim Flaherty, Finance Minister, to address economy after expected weak GDP data
Category: Business/ Economy
There are no comments yet. Why not be the first to speak your mind.