9905
How China Views the State of Global Economy
World Economy

How China Views the State of Global Economy

China isn’t the only one facing a “new normal”, according to the head of China’s sovereign wealth fund, who tips a period of weak growth, divergence and instability for the global economy.
“China says its economy has entered a ‘new normal’. I think the same can be applied to the world economy,” Ding Xuedong, chairman and CEO of China Investment Corporation, the world’s fourth-largest sovereign wealth fund, told CNBC on the sidelines of the annual World Economic Forum in Davos, Switzerland.
“Weak growth refers to the weak momentum we have in global economic recovery. Divergence is about the widening differences in economic performance and policies around the world,” he said. “[And] instability refers to geopolitical events, such as the conflicts between Russia and Ukraine, as well as terrorists attacks and environmental disasters that happen quite frequently these days.”
Economic forecasters have been paring back expectations for global growth in 2015, reflecting multiple headwinds.

  New Normal
The characteristics of the world’s “new normal” differ from that of China.
In China, the term refers to a period of slower but healthier growth amid a reorientation away from export and investment-led growth model towards domestic-consumption-driven growth.
Discussing his outlook for the world’s second largest economy, Ding says China has the ability to maintain growth in the range of 7-7.5 percent this year.
The economy grew 7.4 percent in 2014, down from 7.7 in the previous year, the slowest pace in 24 years.
“It will not be driven by aggressive government stimulus programs, but [by the] market,” he said, citing the government’s decision to introduce measures to simplify the administrative and approval procedures for businesses and open up more sectors to private enterprises.

 

Short URL : http://goo.gl/eFZa6w

You can also read ...

Bithumb Hacked, $32m in Cryptocurrency Stolen
Cryptocurrencies dropped after the second South Korean...
South Africa GDP Shrinks
South African gross domestic product shrank 2.2% in the first...
Washington in March imposed tariffs of 25% on steel and 10% on aluminum, in a move mainly aimed at curbing imports from China.
Russia said on Tuesday it would impose import duties on US...
Saudi Arabia, which employs about two-thirds of its citizens, is chipping away at a budget deficit that ballooned to almost 16% of GDP after the oil shock of 2014, while FDI slumped more than 80% last year.
Show up, swipe in. The routine is familiar to office workers...
Taxes in Italy Drive Economy Underground
Italy grew rapidly over the 20th century, and its black market...
European businesses say it has become harder to do  business in China over the past year.
European companies complain they still face a tough business...
Credit Crunch Pushing Sweeping Changes in Ethiopia
In a surprise move, Ethiopia’s government announced it would...
Australian Telecom Co. to Axe 8,000 Jobs
Australia’s dominant telecommunications company Telstra...

Trending

Googleplus