Special Report: Global Financial
Special Report: Boao Forum For Asia
BOAO, Hainan, April 19 (Xinhua) -- The worst of the
financial crisis is finished, and the world is entering the time when things
will get gradually better, John Rutledge, a former U.S. presidential economic
advisor, said here Sunday.
He made the remarks during an exclusive interview
with Xinhua at the Boao Forum for Asia (BFA) in China's southern province of
The recession in China has already "passed the
bottom", while the recession in the United States is "at the bottom", he said
while describing the current global economic condition.
"The capital markets around the world are recovering
very nicely," he said, adding that the real economy and paycheck have not yet
hit the bottom, but "very near bottom", and will most certainly be improve by
the end of the year.
He is more optimistic about the prospect of China's
economy, as he is likely to raise the forecast of China's economic growth rate
in 2009 between 6 percent and 8 percent.
"I think the recent signs suggest the number is too
low," he said, referring to his previous forecast between 5 percent and 6
In terms of growth, Rutledge thinks China will come
back fast, while the United States will revive more slowly.
Rutledge also praised China's massive stimulus
"China has almost entirely aimed at construction and
infrastructure. As Wen said, infrastructure will make more productivity later
for the economic growth," he said.
Rutledge pointed out that China's stimulus package is
of great social value, as it is aimed directly at construction in an effort to
raise the income of migrant workers.
"They (migrant workers) transfer money they make from
rich cities to families in small villages. It's very important to keep the flow
of money to help the less fortunate villages to grow," he said.
China does not need another stimulus package, as the
current one is well-designed, fast, large, and it is aimed at people who "need
help most", he said.
"We can declare victory, I would say," said Rutledge,
noting that the crisis would make integration between Asian countries closer and
boost cooperation between governments.
"This is where the stability of the Asian growth
machine will be determined," he said.