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Hu expected to speak on growth at G20 summit

Updated: 2012-06-19 09:19
( Xinhua)

LOS CABOS - Chinese President Hu Jintao, who attended all the previous G20 summits, is expected to speak on?the fragile world economic recovery and propose measures for global growth and stability, Chinese officials said.

The Group of Twenty (G20) started a two-day summit in the Mexican resort of Los Cabos on Monday to sort out risks to global growth and find ways to keep the world economic recovery on track.

At the meeting, the leaders will exchange views on the global economic situation, the strengthening of the financial system, development, trade and employment.

A summit declaration is expected to be issued at the end of the meeting.??

The Los Cabos summit convenes at a time when the global economy is facing great risks to growth and stability. The euro-zone debt crisis, slowdowns in major developed nations and even in emerging economies, and high unemployment in parts of the world are threatening the fragile recovery.

In its latest report issued last month, the Organization for Economic Cooperation and Development (OECD) forecast a mild recession in the euro zone this year, with a 0.1 percent contraction in GDP growth, and warned that the euro-zone crisis is posing a risk to the global economic recovery.

"In the current world economic environment, the G20 members should stick together in difficult times and pursue win-win cooperation," the Chinese president said in a written interview with Reforma, a major Mexican newspaper, prior to the summit.

Hu said that to sustain and strengthen the momentum of economic recovery, "we need to enhance macro-economic policy coordination, and all countries should pursue win-win cooperation through concerted efforts."

"Mexico has made extensive preparations for hosting the Los Cabos summit since assuming the presidency. In Los Cabos, I look forward to exploring with leaders of other G20 members ways to promote world economic stability, recovery and growth," Hu said.?

All parties should address the issues of the euro-zone sovereign debt crisis, volatile commodity prices and financial market turmoil through constructive and cooperative discussion, he said.

"China is speeding up its development mode, adjusting economic construction and maintaining a stable and fast momentum of economic growth, which is a great contribution to the world economy. China is confident in itself and hopes this summit will yield positive results in maintaining economic growth and stability," he said.

Earlier this month, UN Secretary-General Ban Ki-moon said that the world economy is in a precarious situation. "The euro crisis may still escalate, and is already affecting economies and livelihoods worldwide," Ban said.

"We need a powerful, coordinated solution to the worldwide jobs crisis and decisive action to avoid a new global recession," Ban said. "We need inclusive green growth that can drive sustainable development."

Mexico has established priorities on the G20 agenda, including economic stabilization and structural reforms as foundations for growth and employment, strengthening the financial system, enhancing food security, and promoting sustainable development, green growth and the fight against climate change.

"We know that the international economic situation is still fragile and that wholehearted efforts are required to promote the recovery and, most importantly, restore growth and jobs," Mexican Foreign Minister Patricia Espinosa told a press conference on June 9.

Therefore, she said, in the interest of the international community as a whole, Mexico's aim for the Los Cabos summit is to get the G20 members to agree on specific agreements to support the recovery and sustained and balanced growth.

Analysts said that five years after the international financial crisis, the global recovery is now on track, but risks to global growth remain. The major task of the Los Cabos summit is to work out policies to ensure global growth and employment, they said.

The G20 was created in December 1999 in response to the financial crises affecting the emerging economies in the late 1990s.

Confronted with a global financial crisis, heads of states and governments of the G20 members met for the first time in Washington in November 2008 to work out an action plan to prevent the financial system and the global economy from collapsing.

Since then, leaders of the G20 members met regularly: in London in April 2009, Pittsburgh in September 2009, Toronto in June 2010, Seoul in November 2010 and Cannes in November 2011.

At the last summit in Cannes, specific measures were agreed upon under the Cannes Action Plan for Growth and Jobs in order to ensure global economic growth. The leaders made progress in reforming the international monetary system, and the euro-zone crisis was also a key topic of discussion.

The G20, which accounts for 90 percent of global output and two thirds of the world's population, has become the premier forum for economic and financial cooperation.

The G20 members are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, the United States and the European Union.

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