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Economy Watch
Economy Watch follows the progress of the world economy and offers you our weekly picks. Be sure to visit for the weekly updates.
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September 2 Updates
| US Undergoes IMF-World Bank Financial-Sector Assessment
The US is mostly compliant with international financial standards but in documents released Monday (31 August), officials acknowledge that some room for improvement exists, particularly in the regulation of hedge funds, municipal securities and over-the-counter derivatives.
The Treasury Department said that these self-assessments are inputs into the US Financial Sector Assessment Program (FSAP) review, which the IMF is conducting jointly with Treasury and the US financial sector supervisors and regulators ranging from banking, insurance, securities and commodities futures. The program is designed to strengthen monitoring of financial systems.
The Treasury noted the US had committed to participation in the FSAP in 2006 during an IMF economic review, known as an Article IV consultation. It said the financial sector review would be finished in 2010. The IMF confirmed Monday that the US review under the FSAP was expected to wrap up in 2010.
Premier Wen: Economic policy to stay unchanged
Chinese Premier Wen Jiabao said on Tuesday (1 September) that China would not change the orientation of its stimulating economic policy as the country is at a critical stage in the recovery of the economy.
He added that China's government would continue to pursue proactive fiscal and moderately easy monetary policies.
In his meeting with World Bank President Robert Zoellick, he revealed that China would fully implement and continue to enhance and perfect policy in response to the international financial crisis to achieve the goals of economic and social development.
China's economy grew 7.1 percent in the first half of this year and 7.9 percent in the second quarter, reversing a declining trend in the previous seven quarters.
World Bank President Zoellick also commented that China's economic recovery might be better than expected.
In the first seven months of this year, China has seen a robust growth of domestic demand as consumption surged 15.2 percent year on year and investment 32.9 percent. The Ministry of Commerce predicts China's exports will slow their decline or even grow on a monthly basis.
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