THE world risks sliding back into recession, China’s Premier has warned.
In a stark assessment of the gobal economy and his country’s place in it, Wen Jiabao said today that China faced a difficult year trying to maintain growth.
However, it would not give in to foreign pressure to raise the value of its currency or withdraw stimulus measures put in place in late 2008 to pull the country out of the crisis.
Mr Wen called for more reforms to the world’s financial system as China ponders policy choices aimed at fighting rising inflation while increasing domestic demand.
He said that surging commodity prices had been at the centre of disputes with Australia.
“The unemployment rate of the world’s main economy is still high, some countries’ debt crises are still deepening, and the world’s commodity prices and exchange rates are not stable, which are most likely to become the cause of any setback in the economic recovery,” he said.
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Perhaps the problem is they wish to maintain growth rather than focusing on being sustainable. The world’s economy shouldn’t be a Ponzi scheme…