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      Global economy still faces considerable risks

      2014-05-14 08:42 Xinhua Web Editor: Qin Dexing
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      World economy still faces various risks despite its recent improvements, and further efforts on growth and consolidation are needed, said heads of world's leading economic organizations on Tuesday.

      High unemployment, significant output gap, low investment, rising inequality and slowdown in emerging economies still have an impact on global growth prospects, said chiefs of the Organization for Economic Cooperation and Development (OECD), the International Monetary Fund (IMF), the World Bank, the International Labor Organization (ILO) and the World Trade Organization (WTO) in a joint statement with German Chancellor Angela Merkel released after their meeting in Berlin.

      "The global economy has noticeably improved, but is still far from a robust, sustainable growth," the statement said.

      "Considerable risks of various kinds remain," said the leaders. "The debt level of most industrialized countries remains too high at the level of the state, enterprises and households. In many countries, the unsatisfactory development of the labor market must continue to be addressed urgently."

      They urged governments to continue their efforts on promoting growth and ensuring fiscal consolidation.

      Structural reforms should continue to be implemented in the euro zone to strengthen the stability and competitiveness in the common currency area.

      In the United States, a credible medium-term budget is needed for its fiscal consolidation, as the country still suffers from a high level of debt.

      Emerging economies, meanwhile, must retain their strategies to ensure sustainable growth, improve adaptability to external shocks, and to reduce poverty.

      According to IMF, global economy would grow by 3.6 percent in 2014 and by 3.9 percent in 2015.

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