China has major role in world economic recovery

China will lead the global economic recovery with its relatively fast GDP growth driven by stimulus plans and expanding domestic demand, the United Nations Conference on Trade and Development said on Sunday.

"Though China's economy is not expanding as fast as before, its GDP accounts for a growing share of the world economy," said Li Yuefen, head of the Debt and Development Finance Branch of the UNCTAD.

"China's domestic consumption surged significantly and has become the new driver for further growth. I agree that China is the locomotive of the world economic recovery," Li said.

Li was speaking at a news conference on the Trade and Development Report 2012.

The report, featuring policies for inclusive and balanced growth, will be published on Sept 13.

Xing Li, assistant vice-president of client markets at Swiss Reinsurance Company Ltd's Beijing branch, agreed.

"China's GDP growth kept a fast pace in recent years and grew 7.6 percent year-on-year in the second quarter of this year. Though it is the slowest growth in more than three years, it still outperformed developed economies and is a highlight among emerging economies," Xing said.

"Emerging markets, including China and India, will play a very significant role in boosting the world economic recovery," she said.

Xing said the world economy is recovering, but at a slower pace than expected.

"The US will avoid recession again; European Union leaders agree Spain and Italy have done enough to repair their struggling economies and will offer them aid."

President Hu Jintao said at the APEC Summit held at the Russian port of Vladivostok, that China will continue to pursue a proactive fiscal approach and a prudent monetary policy, and maintain balance by maintaining steady and healthy growth, adjusting the economic structure and managing inflation.

China's moves to boost domestic demand and stabilize economic growth will create great business opportunities and jobs for both the Asia-Pacific and the world, and contribute to global growth, according to Hu.

Dusan Zivkovic, economic affairs officer of the Debt and Development Finance Branch of the UNCTAD, said China is changing its growth model with strong domestic demand and great reserves.

News we recommend: Diaoyu row hurts Japanese car sales New Controls in the Making Housing report notes rise in sales The Price Goes Up and Up Rail projects to spur economy Finance vehicle loans to local govts up in H1 A Treasure Trove of Resources  Kai-Fu Lee, Citron battle heats up Frictions Over Renewable Energy