Business / Economy

Developed nations 'need to consider impact' on world

By Zheng Yangpeng (China Daily) Updated: 2014-03-25 07:16

Premier Li Keqiang shares a light moment with Christine Lagarde, managing director of the International Monetary Fund, on Monday in the Great Hall of the People in Beijing. Wu Zhiyi / China Daily

Developed countries should be aware of the "spillover" effect of their economic policies, and emerging markets will remain an important force in global growth, despite their present difficulties, Premier Li Keqiang said when meeting

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International Monetary Fund Managing Director Christine Lagarde on Monday.

"Developed countries should be aware of the spillover effect of their own economic policies," Li told Lagarde.

"The emerging markets face challenges, but they remain an important force in world growth."

He admitted there are difficulties for nations in coordinating their macroeconomic policies, but he urged all countries to strengthen dialogue and cooperation under international arrangements such as the Group of 20.

The United States is expected to end its quantitative easing policy, as its economy has improved, but analysts said this might pose difficulties for emerging markets, which are struggling to cope with capital outflows in anticipation of higher US interest rates.

Zhang Ming, a researcher with the Institute of World Economics and Politics under the Chinese Academy of Social Sciences, said although the anticipation of the US tapering has caused "turbulence" in several emerging markets, China is an exception.

Unlike other nations, Zhang said, China runs a large current account surplus and maintains tight control of its capital account.