IMF leader: China to lead the world out of recession

China is leading the world out of recession and China's role has been rising in tandem with its growing economy in the international policy debate, said Director Dominique Strauss-Kahn of the International Monetary Fund at Beijing International Finance Forum.

IMF predicts that China's economic growth rate may reach 8.5 percent in 2009 and 9 percent in 2010, substantially above the global average growth rate. "This performance is in keeping with China's remarkable achievements over the last generation," said Dominique Strauss-Kahn.

However, Kahn believes that the world economy will still face multiple challenges. "While the global outlook has thankfully improved, we still face considerable policy challenges," said Kahn, "In China, the government's commitment to maintain fiscal stimulus into 2010 will be important for supporting growth."

Meanwhile, for the unbalanced global demands, Kahn thinks that higher Chinese domestic demand, along with higher U.S. saving, will help rebalance world demand and assure a healthier global economy for us all. He believes that China should introduce more measures to stimulate private consumption to achieve a more sustainable and structural economic adjustment. "A stronger currency is part of the package of necessary reforms." said Kahn.

In addition, in order to ensure the IMF becomes an effective and reliable last resort lender, Kahn suggests establishing global financial insurance to ensure the continuous increase of lending resources. And he added regional resources made them more effective.

Finally, Kahn welcomes more Chinese to work in IMF and to partake in decision-making to meet the interests of those countries.

By People's Daily Online