Beijing: Allaying concerns over slowing down of Chinese economy due to a decline in exports, President Hu Jintao has expressed confidence that the world's second largest economy will maintain steady and robust growth to make contribution to global economic progress.
"China's economy has maintained stable growth," Hu told Mexican newspaper Reforma prior to the G-20 summit to be held in Los Cabos.
"Facing a complex and grave external economic environment, China has taken targeted measures to strengthen and improve macroeconomic regulation, accelerate the shift of the growth model, adjust economic structure and build long-term mechanisms to boost domestic demand," he said.
These efforts are made to ensure that China's economy is driven by both consumption, investment and export so as to ensure steady and robust growth and maintain social harmony and stability, Hu, also General Secretary of the ruling Communist Party of China, said.
According to Hu, in the first quarter this year, China's GDP grew by 8.1 percent and the share of its current account surplus in GDP fell to 1.4 percent.
"China has thus made important contribution to global economic recovery and growth," he said ahead of the G-20 Summit, which is taking place in the shadow of the economic crisis in the Eurozone.
China’s economy grew by 9.2 percent last year. It was expected to slow down to 8.5 percent this year, according to Asian Development Bank.
The Chinese government has fixed 7.5 percent as the GDP target.
Exports, the mainstay of China’s economy showed considerable slow down in the recent months due to crisis in EU and US.
Hu said that China's economy is an integral part of the global economy.
"We will continue to pursue a proactive fiscal policy and prudent monetary policy and maintain a balance between ensuring steady and robust growth, adjusting economic structure and managing inflationary expectations," he said.
He urged members of the G-20 to sustain and strengthen the "hard-won" momentum of economic recovery.
"The world economy is now on the path of recovery and the prospect of economic growth is improving to some extent," Hu said, adding that such recovery is still not firm, and faces acute unpredictability.
Hu said it is becoming more difficult for countries to coordinate their macro-economic policies.
Hu said that G-20, consisting of both major developed countries and emerging market economies, has a balanced composition and is representative of the global economy.
Hu said 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."
Hu also urged all the G-20 members to continue to advance the reform of the international financial system, speedily meet the target of IMF quota and governance reform, improve the international monetary system and enhance international financial regulation.
"We should continue to oppose protectionism in all forms and advance the Doha round negotiations.
We should continue to give high priority to development and promote growth of developing countries so as to increase total global demand," he said.
Stating the European sovereign debt as "An issue of general concern," Hu said "G-20 should address it in a constructive and cooperative way, encourage and support efforts made by Europe to resolve it and send a signal of confidence to the market."
First Published: Sunday, June 17, 2012, 18:23