The global economy faces risks from both slowing growth and persistent inflationary pressures, the reprecussions of which are spreading over from emerging to advanced economies, said Ma Delun, vice-governor at People's Bank of China (PBoC), Reuters 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,” said Ma. He 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." Ma acknowledged that the slowed growth risks co-existed with persistent inflationary pressures, but he did not directly address how those inflationary pressures are affecting China. His remarks echoed comments made earlier this week by Chinese Premier Wen Jiabao, indicating the apprehension with which Beijing sees turmoil in the US and European markets.