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          CHINA> National
          China's stimulus plan a great contribution to world
          (Xinhua)
          Updated: 2009-03-21 22:22

          BEIJING -- Against backdrop of world's financial crisis, China will play a vital role in world's economic recovery, said Murilo Portugal, Deputy Managing Director of the International Monetary Fund (IMF) on Saturday in Beijing.

          I think China's role is very important. Its fast growth has already made important contribution to the world economy, and it will continue playing that vital role in world's economic recovery, Portugal said on the first day of the three-day China Economic Forum 2009.


          Murilo Portugal, Deputy Managing Director of the International Monetary Fund (IMF), delivers a speech at the China Economic Forum in Beijing, capital of China, March  21, 2009. [Xinhua]

          China's financial policy has long been very self-regulated and prudent. Besides, China has large quantity of foreign exchange reserves and debts equaling to 20% of its GDP. Based on that, China can make great contribution to the world economic recovery, Portugal added.

          He went on to say that the economic stimulus plan that China unveiled last November, stipulating that the investment from 2008 to 2010 will equal 13% of its GDP, is undeniably a huge contribution to the world growth.

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          Portugal said that he is confident that China will achieve high positive growth this year though the growth rate will lower than last year.

          China has announced a 4 trillion-yuan (585 billion US dollars) two-year economic stimulus package to boost growth and domestic demand, 1.18 trillion yuan of which will be funded by the central government.

          The stimulus package plan has four major components, including large-scale government spending, industrial restructuring and rejuvenation, scientific research and social safety net.

          Economic recovery depends on effective measures

          The IMF predicted that world economic recession will further deepen in 2009 with world's per capita GDP probably dropping 2% or even lower, and World's total GDP also slumping and other related indexes further going down, Portugal said in his speech at the forum.

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