THE world's economic situation is much better than it was a year ago, and emerging markets, including China, have played more important roles in spurring growth, participants at the Lujiazui Forum said yesterday.

But there are still many uncertainties, such as debt crises in the European Union, political riots in North Africa and the earthquake in Japan. The situation in the United States was also crucial for recovery, participants said.

"The US has passed the most difficult times with better employment and better finance," said Lawrence Summers, a professor at Harvard University and former director of the US National Economic Council.

"Now the world has the framework of the G20, which works pretty well, especially in dealing with the crisis. The emerging markets, or to some extent emerged markets, will have a profound influence on the rise of Asia."

Li Lihui, president of the Bank of China, said the world's economy had recouped territory lost in the global financial crisis, and there were signs of the growing power of emerging markets.

But the global economic order remained the same as before the crisis - dominated by the US. "What the US will do is crucial for the rest of the world," Li said.

Quantitative easing policies in the US, due to end in June, led to floods of speculative money flowing into emerging markets. Ronald McKinnon, an economics professor at Stanford University, said it partly explained why inflation was so high in China.