(Adds extra comments and background)
BEIJING, Sept 2 The global economy faces risks
from both slowed growth and persistent inflationary pressure,
which is spilling over from emerging to advanced economies, Ma
Delun, a vice-governor at China's central bank, said in comments
reported on Friday.
The People's Bank of China vice-governor's gloom about world
economic prospects echoed earlier comments from Chinese Premier
Wen Jiabao, underscoring that Beijing policy-makers are not
counting on major foreign markets to recover quickly.
Ma told a financial forum in far western China on Thursday
that slower growth in the United States, Europe's debt problems,
and Japan's poor economic performance were adding to those
global risks, the China News Service reported.
"The long-term fiscal sustainability of the United States
faces challenges, the European sovereign debt crisis continues
to fester, and the Japanese fiscal deficit is growing," the
report cited Ma as saying.
"Government debt risks have become a major challenge
affecting the global economic recovery," he added.
Ma also warned that "some emerging economies are feeling the
consequences of policy contraction, and their rates (of growth)
are slowing, and downstream risks to the global economy are
increasing," the report said.
Ma said those growth risks co-existed with persistent
inflationary pressure, which he blamed on excessive global
"Inflationary pressures have spread from emerging economies
to advanced economies," he said. Ma's published comments did not
directly address how those pressures are affecting China.
But in comments published on Thursday, China's Premier Wen
also focused on the mix of sluggish global growth and
inflationary pressures, and said fighting inflation remained his
Wen said the global economy is still fragile and sovereign
debt problems in the United States and Europe are set to put a
"drag" on world economic growth. He said China's exporters would
suffer from softer external demand and rising costs.
China's inflation ran at 6.5 percent in July, outstripping
the government's full-year inflation target of 4 percent.
Chinese factory activity data issued on Thursday indicated
that the pace of inflation is quickening, and manufacturers have
experienced a sharp drop in export orders partly caused by
sovereign debt problems in rich nations.
(Reporting by Chris Buckley; Editing by Ken Wills)