Chinese vice premier predicts long-term global recession

Chinese Vice Premier Wang Qishan said he believes the global economy will fall into a long-term recession, and called for China to respond with financial reforms, the Financial Times reported. “Right now the global economic situation is extremely serious and in a time of uncertainty the only thing we can be certain of is that the world economic recession caused by the international crisis will last a long time,” he said over the weekend. Chinese policymakers are increasingly worried that the country’s underdeveloped financial sector is at risk from a global slowdown. Wang referred to  “structural problems,” and called on regional banks to focus less on expansion and more on efficiency. The comments could be a prelude to monetary loosening, amid a deflating property bubble and a slow-down in exports.