2016年CRI G20 Meeting Enhances Confidence in Economy

As part of a joint 1 declaration issued after the sessions, the Finance Ministers and Central Bankers have agreed that stimulus 2 measures will continue to be needed to try to spur growth.

All have agreed that the global economy needs to look beyond ultra-low interest rates and simply printing money as a way to keep their respective economies moving.

Wang Hai-yan is with the Washington, DC-based China India Institute, a research and consulting firm.

She says the session in Shanghai has suggested caution, rather than panic.

"I don't think they see the urgency, because if they don't see crisis upcoming, so there is no crisis responses. They do call for coordinated 3 efforts on monetary 4 front, on the fiscal 5 spending front, and called for each country to launch structural 6 reforms, but a lot of these talks are in the right directions, but the immediate 7 action, the urgency, are not there yet, precisely 8 because we are not headed into recession, not yet."

Wang Hai-yan says despite the slow-down of the world's two largest economies, both China and the US remain on relatively 9 solid economic tracks.

"Because, even though there is a downward pressure, there are a lot of headwinds coming up, but the forecasting of a 3 to 3.4 percent global growth is not a recession. U.S. economy is steady, a not robust 10 recovery but very steady, annualized growth this year could be around 2.5 percent. China, the second largest economy, could head to a range of 6.5 to 7 percent."

Shanghai's meeting has seen Finance Minister and Central Bank Governors also agree to continue a focus toward structural economic reforms to try to make growth sustainable over the long-term.

Chinese Finance Minister Lou Jiwei has gone on-record at the sessions in Shanghai saying Chinese authorities will maintain a flexible fiscal policy, while at the same time keeping the debt ratio at a sustainable level.

He also says Chinese monetary policies will continue to try to ensure price stability in the domestic market.

David Lipton, deputy Managing Director of the IMF, says the current Chinese growth model remains 11 sound.

"The economy continues to grow. It's slowed a little but it continues to grow. I think what's interesting is that the economy is not just one economy now. There is part of the economy that is slowing. The export-oriented heavy industry, part of the economy. But there is another part of the economy. The part that derives 12 from household spending to partly services and to partly durable 13 goods that's growing and growing pretty quickly. There is a kind of transition underway. It will be complicated. It may be a bumpy 14 transition, but it's continuing. The important thing for the rest of the world is that even if there is no hard landing, this transition will be very meaningful for the rest of the world."

Promises of so-called 'green financing' and a renewed focus on stamping-out funding for terrorism have also been made.

The Finance Ministers and Central Bank Governors meeting in Shanghai comes in advance of this year's G20 Summit, which is slated 15 to take place in Zhejiang's capital, Hangzhou, on September 4th and 5th.

For CRI, this is Li Jianhua.