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China Daily Website

G20 to focus on global economic growth

Updated: 2012-06-17 11:19
(Xinhua)

MEXICO CITY - Global economic recovery and growth will be the most pressing topic at the upcoming Group of 20 (G20) summit in the Mexican city of Los Cabos.

Around the world, the chronic euro-zone debt crisis, a dismal US economic outlook, and the slowdown of economic growth in some emerging markets have prompted G20 leaders to take concrete measures at this time of unprecedented economic hardship.

Mexican Deputy Foreign Minister Maria de Lourdes Aranda told Xinhua in an exclusive interview that Mexico will focus on how to maintain economic stability and meanwhile follow the important agreements of previous G20 summits so as to promote vigorous, sustainable and balanced global economic recovery.

"The recovery of market confidence and structural reforms are necessary for further growth and job creation," she said, adding that "we also know that fostering financial inclusion and improving the international financial architecture are important to prevent similar crisis in the future."

Chinese Vice-Foreign Minister Cui Tiankai said recently that restoring a strong growth and recovery is at the moment the most urgent task.

European Commission President Jose Manuel Barroso and European Council President Herman Van Rompuy said in a joint letter to the leaders of EU members that "we should deliver a strong and credible message on growth at the Los Cabos Summit."

To end the crisis, European countries have adopted a set of measures including strengthening firewalls and reducing bank liquidity risks.

Euro-zone finance ministers said that the single-currency bloc is ready to offer up to 100 billion euros (about $125 billion) in financial aid to rescue Spain's ailing banking sector.

Still, there are differences on how the international community could help to cure the ailing economy.

Countries including the United States and France believe that debt-ridden nations should find ways to simulate their economies and accept international aids at the same time.

However, German Chancellor Angela Merkel warned that spending increase and economic stimulation would make the situation from bad to worse.

The summit should also be a good opportunity to promote sound and stable development of international trade and build a free, open and fair global trading environment.

The finance ministers and central bank governors of the G20 nations agreed at a meeting this April that all nations should jointly oppose trade and investment protectionism and work hard to narrow development gap as practice of trade protectionism has been increasing recently.

According to the data published by the World Trade Organization, a total of 124 trade restriction measures have been issued by G20 nations since mid November last year.

Meanwhile, the role of the emerging countries in shaping the global economic future has already grown to be as important and indispensable as that of the developed economies.

"The G20, which includes both developed and emerging or developing countries, is a reflection of the growing influence of emerging countries in political and economic issues globally and the need to find innovative ways to confront new global challenges by a genuinely collective response," said Aranda.

South Africa's ambassador to Mexico, Mphakama Mbete, told Xinhua that South Africa remains committed to seeking growth and fair trade between developed and developing nations through the G20 meetings.

Cui Tiankai said China has always actively cooperated with, and has played a constructive role in the G20's efforts to combat the international financial crisis and strengthen global economic cooperation.

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