Publish Time

2022-01-13

Xinhua News Agency, Washington, January 11 (International Observation) Global recovery challenges intensify, China's economic resilience remains. Xinhua reporters Xu Yuan and Gao Pan. The World Bank released its latest Global Economic Prospects report on the 11th, pointing out that the global recovery momentum will slow significantly in the next two years, and strengthening international cooperation is the key to the world economy embarking on a virtuous development path. Against the backdrop of slowing global growth, the Chinese economy still shows development potential and growth resilience, which has been affirmed by international organizations and economists. Multiple risks hinder recovery. The Global Economic Prospects report points out that the world economy recovered from the impact of the epidemic in 2021. However, affected by factors such as the threat of new variant coronaviruses, inflation, high debt, and income inequality, global growth is expected to slow significantly this year, and this trend may continue into 2023. The World Bank expects global economic growth rates of 5.5% and 4.1% in 2021 and 2022, respectively, both down 0.2 percentage points from previous forecasts. Global economic growth will further slow to 3.2% in 2023. World Bank President David Malpass pointed out that the world economy is facing simultaneous challenges of the COVID-19 pandemic, inflation, and policy uncertainty. There are no precedents for government spending and monetary policies. Increasing inequality and security challenges are particularly harmful to developing economies. At the same time, the slowdown in growth in major economies such as the United States will curb external demand from emerging markets and developing economies. Many developing economies lack the policy space to support economic activity when necessary. The World Bank predicts that the risks of a "hard landing" for developing economies are increasing due to the superposition of multiple factors such as the continued spread of the epidemic, supply chain bottlenecks, and inflationary pressures, and increasing financial vulnerability in most regions. Malpass said at a press conference that day that the growth gap between developed and developing economies is widening. This has led to developing economies lagging behind in economic recovery and worsening poverty. Malpass also expressed concern about the "unbridled" fiscal spending measures in developed economies, saying that this not only affects the financing prospects of developed economies but also harms the borrowing capacity of other economies. China's economy is steadily progressing. Against the backdrop of slowing world economic growth, the development potential and growth resilience of the Chinese economy continue to be affirmed by international organizations and economists. The World Bank expects China's economy to grow by 8% in 2021 and 5.1% in 2022, ranking among the top in the world's major economies. The World Bank report points out that despite global challenges such as supply chain bottlenecks, China's manufacturing activities have remained generally stable, and export growth has accelerated. The World Bank particularly affirmed the role of China's fiscal and monetary policies in stabilizing economic growth. The People's Bank of China lowered the reserve requirement ratio, injecting short-term liquidity into the market. China's macroeconomic policies have effectively alleviated financial pressures. Andy Rothman, investment strategist at Matthews Asia, recently wrote that China's economy is expected to perform strongly in 2022, investor sentiment will further improve, and will drive the Chinese capital market to improve. In addition, the Regional Comprehensive Economic Partnership (RCEP) will play a key role in stabilizing the Asia-Pacific economy and will help the regional and world economy recover. William Jones, president of the Washington bureau of Global Strategy Information magazine in the United States, told Xinhua News Agency that the trade and investment growth brought about by RCEP will help repair the supply chain. As a major supplier of production capacity in the Asia-Pacific region, China will play a positive role in regional epidemic prevention and control in the fields of vaccines and medical equipment. International cooperation is crucial. Under the impact of the epidemic, the uneven global economic growth, the asynchronous policies of various economies, and income inequality have been further highlighted. Due to limited policy space and debt pressures, it is particularly difficult for emerging markets and developing economies to restore growth momentum. The World Bank reiterated the importance of strengthening cooperation among economies in the report, emphasizing equitable growth and policy coordination. The report points out that global economies need to work together to deepen international cooperation to address increasingly severe global challenges, including promoting equitable vaccine distribution, improving the debt sustainability of least developed economies, addressing climate change and inequality within economies, and promoting green, resilient, and inclusive development. World Bank Managing Director, Kristalina Georgieva, pointed out that the choices made by policymakers in various economies will determine the development path of the next decade. The top priority is to ensure a broader and fairer distribution of vaccines to effectively control the epidemic and continue to introduce policies that help reverse the trend of increasing inequality. Georgieva also stressed that some developing economies have high levels of debt, and strengthening global cooperation to expand fiscal resources is key to achieving green, resilient, and inclusive development.