The Straits Times
www.straitstimes.com
Published on Nov 16, 2012
 

China officials see growing global economic risks in 2013

 
 

BEIJING (REUTERS) - China faces growing global economic risks in 2013, with the looming fiscal cliff in the United States, Europe's debt crisis and rising trade tensions all threatening growth in the world's second-biggest economy, senior officials warned on Friday.

On Thursday, China unveiled the new leaders who will take charge of the world's most populous nation for at least the next five years. China's own economy is showing signs of recovery after seven successive quarters of slowing growth that leave it on course for its slowest full year of expansion in 13 years.

"Uncertainties in the global economy will increase further in 2013, especially in Europe and the United States - China's largest export markets," Vice Finance Minister Zhu Guangyao told a financial forum in Beijing.

He cited the recent IMF forecast that the fiscal cliff in the United States - shorthand for budget cuts and tax hikes that could take effect next year - could amount to US$800 billion (S$982 billion) and cut could US economic growth by 4.8 percentage points in a worst case view.