China, US driving force for global economic growth

BRISBANE, Australia - China and the United States have become the two main driving forces for global economic growth which is recovering but at a slower-than-expected pace, Chinese Vice Finance Minister Zhu Guangyao said here Saturday.

Zhu, who is here for the G20 finance ministers meeting, told the press that China's economy is likely to grow by 7.4 percent this year and the US economy will advance 2.2 percent as estimated by the International Monetary Fund (IMF).

If the rates are realized, "China and the US would become the largest driving forces for the global economy, contributing 27.8 percent and 15.3 percent, respectively, to total world GDP growth, " Zhu added.

The IMF in October lowered its forecast for global growth to 3.3 percent this year and 3.8 percent next year, a scaling back from its July forecast of 3.4 percent and 4 percent, respectively.

Zhu expressed the hope that all G20 economies, including the euro zone and Japan that face the threat of recession, would raise their collective GDP by more than 2 percent above current projections by 2018, a primary objective of the grouping.

He underlined that the Chinese economy has entered into a new phase of progress in which its growth rate should be kept at a proper range based on the principle of sustainable development.

China will also revitalize its economic growth through deepening structural reforms, streamlining the approval procedures and eliminating bureaucracy, Zhu pledged, adding that great efforts should be made to foster innovation to restructure the economy and achieve quality growth.

Australia, as the chair of G20 in 2014, has been urging members to put in place structural reforms at domestic and international levels to drive growth and create job opportunities.