Joint Press Release on the ‘1+6’ Round Table July 22nd 2016

http://english.gov.cn/premier/news/2016/07/22/content_281475399373155.htm

Participants: Premier Li Keqiang, World Bank Group President Jim Yong Kim, IMF Managing Director Christine Lagarde,  WTO Director-General Roberto Azevedo, ILO (International Labor Organization) Director-General Guy Ryder,  OECD Secretary-General Angel Gurria  and FSB (Financial Stability Board) Chairman Mark Carney

Sluggish global growth, significant risks persist

The global economy is sluggish and faced with downside risks and uncertainties…We recognize that aggregate demand will remain weak in the short run, and it will take time for supply-side policies to show effects, so a comprehensive package of policies are needed to strike a good balance between short-term and long-term goals…Notwithstanding the improvement in resilience brought about by post-crisis financial reforms, the global financial system faces pronounced risks, which could be amplified by the slow-down in global growth.

Monetary, Fiscal and and Structural tools to be used and communicated effectively

Strong, combined and coordinated efforts are needed, including use of all policy tools – monetary, fiscal and structural – to deal with risks and uncertainties in the world economy, safeguard financial stability and support economic growth. …Well-calibrated and effective communication of policy stances will help to boost confidence, enhance policy effectiveness, and limit negative spillovers.

China continues to play a key role in recovery

China has taken the initiative to adapt to and guide the economic New Normal. While supporting aggregate demand, China continues to strengthen the structural reform, especially the structural reform on the supply-side, break a path for growth, accelerate the shift of growth models from emphasizing size and speed to quality and efficiency, and boost sustained driving forces for growth

Shared directions of structural reforms to play a key role in fostering global economic growth  

While country circumstances differ, there are shared directions of reform in general terms, including deregulation, enhancing competition, encouraging innovation, promoting fiscal reform, promoting trade and investment, strengthening the financial system, advancing labor market reform, improving infrastructure, enhancing environmental sustainability and promoting inclusive growth.

Mixed global employment outlook

The current global outlook for jobs is mixed with slower growth leading to weaker prospects for employment and wages in many countries. Rising inequality and the risk of setbacks to the global drive to reduce poverty, make policy initiatives to increase opportunities for decent work a priority.