"The forward-looking reforms set out in China's Third Plenum hold promise for a shift to a more balanced economy that delivers higher living standards to its population, as well as continued economic stability and growth that have characterised China's remarkable economic progress," Lew said.
The Treasury Secretary said this yesterday in his address at the annual Spring meeting of the International Monetary Fund and the World Bank.
"The timing and specifics of China's reform agenda will be important to that economic transition. Rebalancing the Chinese economy will require further exchange rate appreciation so that consumption, rather than investment, drives domestic demand," he said.
Lew said the discussions of ministers and governors over the last two days were centered around the growth agenda.
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The US economy, he said, continues to gain strength, and as the IMF noted in its latest World Economic Outlook, the US will remain a main driver of global growth going forward as private sector demand increases and fiscal headwinds are reduced.
"More needs to be done to ignite growth and guard against further disinflation. This will help reduce the burden of adjustment in the periphery and promote demand rebalancing in the euro area while fuelling growth, investment, and job creation across Europe," he said.
Over the past two years, Japan's recovery from a decade and a half of entrenched deflation has been driven largely by domestic demand, Lew said.
"With challenges in the outlook for domestic demand, it is important that the Japanese authorities remain committed to calibrating all three arrows of Japan's economic policy to sustain a healthy rate of domestic demand growth. Long term structural reforms will be key to creating sustainable growth," he said.