Mr Zoellick said that the best way China can help support the world economy at this time is through the efforts China is making to strengthen its own economy. -- PHOTO: AP
BEIJING - WORLD BANK President Robert Zoellick said on Monday China's efforts to deal with slowing growth, falling exports and growing unemployment would help economies across the globe weather the financial crisis.
'The best way China can help support the world economy at this time is through the efforts China is making to strengthen its own economy,' Mr Zoellick told journalists after a day of meetings with top economic planners.
But 'that won't be easy given the downturn in international trade that China is already experiencing", he said.
Beijing's newly announced fiscal and monetary stimulus package was an important step to spur consumption and wean the world's fourth largest economy from its dependency on exports, he said.
'China plays a critical role in the global economy, (its) efforts to boost domestic demand are good for the global economy. They can also help China achieve its own economic rebalancing goal,' he added.
Mr Zoellick held talks with top Chinese officials including Finanace Minister Xie Xuren and will meet Prime Minister Wen Jiabao and Central Bank Governor Zhou Xiaochuan before leaving on Wednesday.
'As we compared notes on the global economy, we agreed that 2009 will be a very difficult year that involves considerable uncertainty,' Mr Zoellick said of his Monday meetings.
He said re-establishing the lending ability of private financial institutions was key to preventing further economic contractions that could exacerbate worldwide unemployment and lead to global trade protectionism.
The World Bank would continue to focus on developing nations which remained the most vulnerable to the continued global downturn, he said.
'As unemployment increases around the world this problem will get worse and it could lead to social and political unrest as we already saw last year due to high food prices,' Mr Zoellick said.
On Sunday, Mr Zoellick visited areas in Sichuan province devasted by the May 12 magnitude 8.0 earthquake. The World Bank has offered China a 710 million dollar loan for reconstruction in the region. -- AFP
