The IMF’s International Monetary and Financial Committee met on 11-12 October in Washington, D.C. The participants discussed the recent situation and risks in the global economy and financial markets, the global policy agenda and IMF reform. Deputy Governor Yi Gang attended the meeting.
The participants were of the view that the global growth remained subdued. The growth dynamics is changing while downside risks persist. The recovery in the U.S. is modest, and the euro area is emerging from recession. However, economic activities in advanced economies are likely to remain subdued, and growth in Japan might slow down in 2014. The emerging markets and developing countries have seen moderated growth and their external financing conditions have tightened. The US should take a prudent approach when exiting the quantitative easing monetary policy, adopt and implement robust medium-term fiscal consolidation and welfare system reform plan. The euro countries should build on the progress toward banking union and promote structural reform to boost competitiveness and support economic growth. Japan should vigorously implement medium-term fiscal consolidation and structural reform plan. The emerging markets and developing countries should adopt appropriate policy mix based on the specific circumstances in their own countries, and implement structural reform.
The participants urged the countries that have yet to ratify the 2010 IMF quotas and governance reform to do so without delay. They also called on the IMF to implement the Integrated Surveillance Decision which has entered into force this year, effectively integrate bilateral and multilateral surveillance, and make better assessments of the global and country-level risks and their impact on global economy and financial stability.
When speaking on the Chinese economy, Mr. Yi Gang said that China has continued sound and stable growth since the start of 2013. The growth has remained within a reasonable range and is likely to reach or exceed the goal of 7.5 percent set for 2013. Price levels have remained stable. At the same time, the economic structure continues to improve, with final consumption contributing an increasingly larger share to growth and the BOP account becoming more balanced. The Chinese Government will continue the proactive fiscal policy and sound monetary policy, further the various reforms and enhance the quality and efficiency of economic growth.
Yi Gang spoke on the imperative to implement the 2010 Quota and Governance reform in order to maintain the credibility, legitimacy and efficacy of the IMF. The Chinese side encourages the IMF and member countries to redouble efforts in order to complete the 15th General Review of Quotas by January 2014 to increase the voice of developing countries and emerging markets. At the same time, the Chinese side expects the IMF to seize the opportunity of the 2014 Triennial Surveillance Review to further adjust the focus and increase the effectiveness of surveillance. Meanwhile, the international community should remain committed to providing support to low-income countries.
