Russia and China warn of “spillover effect” on global economy from US stimulus tapering

China has urged the United States to be “mindful of the spill over effects” of the planned tapering of the country’s monetary stimulus, as Zhu Guangyao, China's vice finance minister said during a meeting with Russian President Vladimir Putin at the G20 summit. The US should “work to contribute to the stability of the global financial markets, and the steady recovery of the global economy,” Zhu added.

Aleksey Kudrin said “Now we are witnessing an attempt to win time to reform the economy, to consolidate budgets, to cut expenses, to increase taxes, to overhaul social welfare, to stimulate some of the industries. … At a certain point this additional stimulus will have to be gone and the economy will have to function on its own,” he said.

“Will it [the global economy] be able to? Which countries won’t cope with the situation? We still don’t know. So, we’ll have to adapt to this new kind of situation. This is going to be a challenge”, Kudrin concluded.

source rt.com