Chinese President Xi Jinping said the global economy has entered a period of “profound readjustment” and recovery remains elusive.
The international financial industry is fraught with risks and protectionism is on the rise, Xi said in a speech at the Boao Forum for Asia in the southern Chinese province of Hainan today. Countries are still facing difficulties in adjusting their economic structure and the global-governance mechanism needs improvement, he said.
Policy makers around the world face growing risks of stagnant or slowing growth. Last week alone, the Bank of Japan said it will start unprecedented stimulus to counter 15 years of deflation, data showed U.S. employers added the fewest workers in nine months and European Central Bank President Mario Draghi said the institution is prepared to cut interest rates if the economy deteriorates further.
“Achieving common development for all countries remains an uphill battle,” Xi said. “Rather than undercutting each other’s efforts, countries should complement each other and work for joint progress.”
Speaking at the same forum today, Christine Lagarde, managing director of the International Monetary Fund, said countries need to “reaccelerate” the process of cooperation that was evident at the beginning of the financial crisis.
“There was a very strong sense of urgency and a massive desire to cooperate,” Lagarde said. “But let’s be honest about it: That sense of urgency has clearly abated as the crisis has tempered and as recovery has been a bit more patchy.”
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