Grim economic situation, says Hu Jintao

Chinese President Hu Jintao has warned the outlook for the world economy was not looking good, but that continued strong growth in China could help serve as a global buffer.

"The situation is very grim," Hu told world business leaders gathered in the Peruvian capital ahead of an Asia-Pacific economic summit.

"The sound and steady growth of the (Asia-Pacific) economy is threatened by the grim world economic situation."

Hu stressed that China's main contribution to world efforts to address the global financial crisis was to maintain steady economic growth at home.

"The steady and relatively fast economic development in China is in itself a major contribution to upholding international financial stability and promoting world economic development," he said.

China's growth, which soared by more than 11 per cent last year, slowed to 9.0 per cent in the third quarter this year, dragged down by economic slowdowns in key export markets such as the United States, Europe and Japan.

China has put together a four trillion yuan (586 billion dollar) stimulus package to shore up the economy, which for years had shown no signs of letting up as the country turned into the world's manufacturing hub.

China has repeatedly said it must focus resources on maintaining domestic growth amid rising expectations overseas that its 1.9 trillion dollars in foreign exchange reserves could be put to use fighting the world financial
woes.

However, Hu vowed China would step up its activity on the international financial scene. China "will play a more active role in international economic cooperation," he said, without offering details.

Source; Agencies