IMF First Vice President: The Chinese economy is a major highlight of global growth this year

2023-05-10

In the first quarter of this year, the Chinese economy grew by 4.5% year-on-year, achieving a good start. How to view the current positive trend of China's economic recovery? What does this mean for the world economy? What are the current challenges facing global economic development? Regarding these issues, Xinhua News Agency reporters interviewed the First Vice President of the International Monetary Fund (IMF), Gita Gopinat, in Beijing. Exceeding expectations for China's economic growth is crucial for global economic recovery. "In the first quarter, China's economic growth exceeded our expectations." Speaking of China's economic performance since the beginning of this year, Gopinat commented. She analyzed that a major driving force driving economic growth is personal consumption. As China optimizes and adjusts its epidemic prevention policies, consumer demand gradually recovers, driving the Chinese economy to rebound and improve. The latest report released by the IMF in April this year predicts that China's economy is expected to grow by 5.2% in 2023, becoming a key factor driving growth in the Asia Pacific region. The global economy will grow by 2.8%, further slowing down compared to last year. Gopinat stated that developed economies have generally experienced sluggish growth this year, with about 90% of developed economies expected to experience lower annual economic growth than last year, while emerging markets and developing economies are expected to achieve faster growth. "Among them, China plays a very important role. This year, China's economic growth rate is expected to reach 5.2%, contributing about one-third of global economic growth, which is crucial for global economic recovery. "She said," The Chinese economy is a major highlight of global growth this year. "Continued policy efforts and deepening reforms will inject new momentum into the economy. Many international observers believe that the Chinese economy can maintain growth that exceeds expectations, It is closely related to the coordinated efforts of China's macro policies. In the interview, Gopinat also expressed similar views. She observed that the current surge in inflation in some countries has made it more difficult to adjust monetary policies. Government departments in various countries need to balance multiple goals such as curbing inflation, supporting economic growth, and maintaining financial stability, while China maintains a relatively low level of inflation while maintaining economic growth. In Gopinat's view, although the Chinese economy is currently facing unfavorable factors such as a decline in external demand and some major economies tightening monetary policies, there is still a lot of room for relevant economic policies in China, which can be coordinated through fiscal and monetary policies to inject new momentum into economic growth. Gopinat also stated that as China further advances structural reforms, continuously relaxes market access, and optimizes the business environment, it will be better able to unleash its medium to long-term growth potential. Alert to fragmentation of geo economy Calls for strengthening multilateral cooperation An IMF report released earlier pointed out that research shows that the more serious the global geo economy fragmentation is, the higher the costs borne by countries will be, and the "decoupling" of science and technology will significantly increase the losses caused by trade restrictions. The report predicts that after decades of integration of the global economy, if it falls into serious fragmentation, the overall economic output may shrink by as much as 7%. "Fragmentation of geo economy will aggravate trade protectionism." Gopinath stressed that strengthening multilateral cooperation is conducive to stabilizing the prospects of global economic recovery. The IMF calls on countries to propose practical solutions, improve the multilateral trading system, and prevent trade "decoupling"

Edit:He Chuanning    Responsible editor:Su Suiyue

Source:Xinhua

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