Enhanced Sino-U.S. economic ties conducive to global recovery

BEIJING, July 27 (Xinhua) -- A two-day Sino-U.S. strategic and economic dialogue, the first of its kind, due in Washington D.C. on Monday, will help boost bilateral economic ties and pull the global economy out of its current downturn, experts say.

POLICIES COORDINATION

The dialogue, an updated version of its predecessor -- the Strategic Dialogue and the Strategic Economic Dialogue, is held at a time when the stagnant world economy is struggling to recover.

The International Monetary Fund (IMF) said in a report earlier this month that the global economy is beginning to pull out of the worst recession since the end of World War II, but stabilization is uneven and recovery is expected to be sluggish.

The report projected that the global output in 2009 will contract 1.4 percent, about 0.1 percentage lower than the April forecast, but the growth in 2010 will reach 2.5 percent, 0.6 percentage higher than the previous projection.

In addition, the World Trade Organization predicted that world trade volumes are expected to shrink 10 percent this year, compared to the previous forecast of a 9 percent contraction.

China, regarded as a powerhouse to drive the world economy, has seen signs of rebound as its economy achieved a year-on-year increase of 7.9 percent in the second quarter of this year, the first of its kind since late 2007. According to UN estimates, China's economy will contribute 50 percent to the world's economic growth this year.

The United States, the world largest economy but still sunk in credit crisis, needs to be back on track of growth.

Observers said the two big economies need to talk to each other about how to tide over the international financial crisis, and the forthcoming dialogue will help stabilize financial and economic situation globally.