BEIJING, February 17, 2023 /PRNewswire/ — A report from People’s Daily: Recent reports from the United Nations (UN), International Monetary Fund (IMF) and other organizations indicated that the global economy will face greater downward pressure and increasing risks of recession.
Balancing inflation control and stabilizing growth is a prominent challenge for the global economy this year.
The IMF attributed the possible slowdown in growth this year to advanced economies, whose growth is expected to slow to 1.2 percent in 2023 from 2.7 percent in 2022.
Perpetuating deflation in advanced economies would result in negative spillovers that could lead to higher debt and financial risks for emerging and developing economies.
The increasing trend towards unilateralism and the protectionist policies of a few countries remain another major challenge for the global economy. It raised concerns among the international community that the global economy, which is recovering sluggishly, could face greater risks if the practice continues.
Severe fragmentation of the world economy after decades of increasing economic integration could reduce global economic output by as much as 7 percent, but losses could reach 8-12 percent in some countries if technology is also decoupled, the International Monetary Fund said in a new staff report.
Modern history reminds the world that large countries should practically take their responsibilities and improve mutual coordination, which is vital for the world economy to maintain steady progress amidst torrents.
The global economy is at a crossroads. Only through increased coordination and cooperation can its anti-risk ability be increased.
It is important to see that there are several reasons for this round of inflation. Supply-side factors aside, the world needs to improve international cooperation, address both the supply and demand sides, repair industrial and supply chains, and pay close attention to energy and food security.
While controlling inflation, advanced economies should work to reduce the negative spillovers caused by their monetary policy adjustments and effectively safeguard the stability of the international financial system.
Building an open world economy serves the common interests of international society. All parties should reach consensus and make joint efforts. Large countries in particular should maintain the stability of the global economic system, rules and foundation with concrete measures, rather than taking the lead to impede international economic cooperation or divide the world economy.
Crises and opportunities have always co-occurred throughout the history of the world economy.
While countries manage risks effectively, they should take active and appropriate management measures to reap more benefits from economic globalization and to rebalance the process of economic globalization.
They should focus more on development issues, work together to make global development more inclusive, beneficial and resilient for all, and accelerate implementation of the UN 2030 Agenda for Sustainable Development.
They should also strengthen international cooperation in combating climate change and push for a comprehensive green transition in economic and social development.
As the largest economy in the world China accelerates its own economic recovery and is committed to improving global economic governance. The country will continue to bring confidence and positive energy to global economic development.
The historic trend of openness and development will not reverse its course, and the world’s shared desire to meet challenges together through collaboration will remain as strong as ever.
All parties should join hands and move forward with confidence to ensure the global economy grows on the right track.
SOURCE People’s Daily
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