G8 Summit seeks economic recovery

Zhenhua when does the world economy embark on the road to recovery? How to promote the world economy to recover as soon as possible? Can the economic recovery begin smoothly and sustainably?　　These major issues will be important topics to be discussed at the Group of Eight Summit to be held in Aquila, Italy. This year's summit was held against the backdrop of the most serious economic crisis in the West, which was the result of the international financial crisis in the late 30. The major western economies have plunged into recession since the summit of Japan's Dongting Lake last July, while the US was "the first" to enter recession by the end of the year.　　From the current global economic situation to analyze, although the summit will discuss a lot of issues, but how to stabilize financial markets and to promote the world economic recovery will undoubtedly be the most important. Because of the complex causes of the Western economic crisis, the impact of the international financial crisis caused by the US subprime crisis on the world economy has been fully demonstrated that the world Economic outlook is still shrouded in a lot of doubts, so the economic recovery and the prospects for recovery are different. The general consensus is that the most difficult period of the current Western recession may be over, and in some countries there are signs of a possible recovery. The forecasts of some authoritative economic institutions are also tending to be cautious and optimistic. For example, the OECD's latest economic outlook, released June 24, predicts that GDP will fall by 4.1% this year and 0.7% per cent next year, better than its forecast of 4.3% per cent and 0.1% growth in its March outlook report. This is the OECD's first increase in economic growth forecasts for its member States since the onset of the US subprime crisis.　　The European Commission's report of June 29 also shows that the eurozone economy is still in deep recession, thanks to a massive financial bailout and economic stimulus efforts by member Governments, but is showing signs of a preliminary turn. But recent Western economic data are hard to provide enough evidence that the world economy has begun to recover. The eurozone economy fell 2.5% in the first quarter, the biggest quarterly decline since the eurozone's inception. The U.S. economy fell at an annualised rate of 5.5% per cent in the first quarter. In the first quarter of this year, Japan's gross domestic product fell by an annualised rate of 14.2%, the biggest decline since the war. In addition, the volatility of consumer confidence in western economies, the government bailout, the stimulus plan and the central bank's "quantitative easing" monetary policy led to a sharp increase in the money supply, creating difficulties and uncertainties in the prospects for fiscal and monetary policy, which casts a shadow over the economic recovery. According to the OECD's latest forecasts, there will be negative growth in the West's big economies this year, with the US economy falling 2.8% and the eurozone and Japanese economies falling by 6.8%. And next year there will only be weak growth.　　Therefore, the world economic situation is still very grim. Clearly, the question of how to push the economy to recover as quickly as possible is a problem for the leaders of the eight countries. Since the second half of last year, Western economies have tried to cope with the crisis by using huge sums of money to bail out a huge stimulus package;The lowest level of history, to the use of unconventional so-called "quantitative easing" monetary policy to directly expand the money supply. At present, the stimulus has been many, monetary policy leverage basically exhausted, but the economy has not seen a significant change, and the increase in the fiscal deficit has become more and more pressure.　　The leaders of the eight countries must find a clear answer at this meeting on how to cope with the still-troubled economy and how to avoid new economic risks, and seek new ways to boost the recovery. Italy's Prime Minister Silvio Berlusconi said shortly that the summit would be a summit to set rules for stabilizing financial markets. As the Chairman of the Summit, Italy has proposed a rigorous regulation of financial markets to prevent a recurrence of the financial crisis. The proposal was adopted in principle by the meeting of the Finance ministers of the eight countries. Given that this round of western recessions stems from the international financial crisis, this proposal is undoubtedly of great significance.　　But at the moment, it is more urgent to forge a new consensus on the economic recovery to bolster global confidence. The Group of Eight Summit held annually, this year is unusual. It is hoped that the Summit will play its part in promoting the global economy as soon as possible, stabilizing the recovery and stabilizing the global financial market for a long time.