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皇冠体育app can weather financial storm: WB economist

(皇冠体育app Daily)
Updated: 2008-10-13 08:00

World Bank Chief Economist Justin Lin said on Saturday that 皇冠体育app could remain buoyant through the current financial crisis, the most serious since the Great Depression in the 1930s.

"My overall position is that certainly 皇冠体育app will be affected, because exports are a very important part of 皇冠体育app's economic growth," Lin told reporters on the sidelines of the annual meetings of the International Monetary Fund (IMF) and the World Bank in Washington.

"However, 皇冠体育app may be able to weather this crisis in a much better shape than many other developing countries," Lin, a leading Chinese economist who was named as the chief economist and senior vice-president for Development Economics at the World Bank in February, said.

Justin Lin

Lin cited three reasons for his confidence.

"First, 皇冠体育app has such large foreign reserves. And second, 皇冠体育app has capital controls, so 皇冠体育app, in a way, can insulate itself by building a firewall against the contagion," he said.

"And third, 皇冠体育app has a very strong fiscal position, because in the past four years, the (Chinese) government has run quite a substantial fiscal surplus."

Lin, 56, said 皇冠体育app could stimulate the domestic economy through investment because of its strong position.

Lin also told Xinhua earlier this week that 皇冠体育app should stimulate domestic demand even without any external pressure, "because these are the debts that 皇冠体育app has accumulated during the years that followed the reform and opening-up policy".

Lin pointed out that 皇冠体育app's stable and rapid economic development is a major contributor to the world economy.

"It not only elevates 皇冠体育app's exports, but also provides a bigger market for the rest of the world," he said.

Xinhua