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World Bank: China’s development will drive the growth of emerging market economies

World Bank: China's development will drive the growth of emerging market economies

On May 18th local time, the opening ceremony of the 73rd World Health Assembly was held by videoconference. Photo by Peng Dawei, reporter of China News Service

Recently, the World Bank released the latest Global Economic Outlook report, pointing out that the world economy will remain in a downturn in the first half of 2021 due to the continuous spread of the coronavirus pandemic.

At the report seminar held by the globalization think tank on the 13th, the head of the World Bank pointed out that the decline in investment and debt growth are the main impacts of the current COVID-19 on the economies of various countries, and China’s economic recovery is unique in East Asia, driving the economic recovery of the world, especially in East Asia and new economies. .

Before the outbreak of the coronavirus, the World Bank had lowered its forecast for global economic growth for the decade beginning in 2020.

The Bank said that its forecast for 2021 was 0.2 percentage points lower than the forecast made in June 2020, and the Bank believes that the uncertainty caused by the pandemic is reducing global trade and investment.

Acting Vice President of the World Bank Ayihan Goth: Judging from the performance of countries in the past period, the world economy is worse than the results we predicted in June 2020.

After the outbreak of the pandemic, the improper means of stimulating the economy in some countries led to a leap in debt growth, and some low-income countries even reached 300-400%, which has never happened since 1997.

At the same time, due to liquidity restrictions, the income ratio of investment has decreased significantly, and global investment has declined significantly. At the same time, people’s consumption patterns are also changing after the pandemic, which has a great economic impact on countries that rely especially on tourism.

The World Bank pointed out that China may become the only major economy to avoid the economic downturn in 2020. The Bank predicts that China’s GDP growth is expected to reach 7.9% in 2021.

Meanwhile, driven by China, the economies of emerging market economies will grow by 5% in the new year, up from 4.6% previously predicted.

Not long ago, the Central Economic Work Conference held in Beijing pointed out that in 2021, China will continue to implement an active fiscal policy and a prudent monetary policy, take the initiative in promoting scientific and technological innovation, accelerating economic restructuring, and adjusting income distribution, and accelerate the construction of a domestic and international double cycle with the main circle.

New mutually reinforcing development patterns. China’s recovery has provided experience for the sustainable development of countries’ post-pandemic economies.

World Bank China Directors of South Korea and Mongolia Rui Ze: China is a V-shaped recovery, while other countries are L-shaped recovery. With global investment down, China’s investment and trade volume remain stable. China regards consumption as the main engine of growth, while continuing to invest in infrastructure. In addition, China has continuously promoted digitalization in finance, consumption and other fields.

Such a recovery model provides experience for countries to develop economically sustainable after the pandemic.

It should also be noted that compared with other countries, China’s manufacturing industry is mature, especially in the field of medical equipment.

China not only guarantees its own needs, but also can put medical supplies into the world, which not only ensures China’s stable recovery, but also contributes to the world.

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