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IMF President: China’s economic recovery is strong

At present, China’s economic recovery is bringing positive spillover effects to the rest of the world through trade channels and China’s demand for raw materials, consumer goods and manufactured goods.

IMF President: China's economic recovery is strong

Georgieva, President of the International Monetary Fund, said recently that China’s economy is “recovering strongly” and has brought positive spillover effects to the rest of the world. She believes that all countries should seize the opportunity to respond to risks of COVID-19 and climate change, increase green investment and multilateral cooperation, and promote a green and inclusive recovery of the global economy. China can play an important role in this process.

 

In an exclusive video interview with Xinhua News Agency on the 13th, Georgieva said that in the latest report released by the IMF, China’s economic growth forecast for this year has been raised to 8.4% from the previous 8.1%. At present, China’s economic recovery is bringing positive spillover effects to the rest of the world through trade channels and China’s demand for raw materials, consumer goods and manufactured goods. At the same time, China plays an important role in revitalizing Global trade, supporting the economic recovery of developing countries and promoting the transition to a “new climate economy”.

 

She said that China’s commitment to achieve “carbon neutrality” by 2060 is an important part of the international community’s mobilization to deal with the disastrous impact of climate change. She also praised the people’s Bank of China for attaching importance to the quality of green investment, focusing on the financial stability risks related to climate, and providing good guidance for the establishment of green financial standards in a very systematic way. The IMF will hold a high-level seminar on green finance and climate policy with the people’s Bank of China from April 15 to 16 to share relevant policy experiences and practices.

 

She also pointed out that at present, China’s economic growth is still more driven by public investment, and expects China to improve and expand its social security network to enhance domestic consumption and continue to promote economic rebalancing.

 

Speaking of the message to be conveyed to the upcoming Boao Forum for Asia annual meeting, Georgieva said that there is a Chinese saying that “crisis is organic in crisis”. “We are facing economic opportunities that will lead us into a green, digital and inclusive future. It is our best way to cherish the memory of those who passed away in the COVID-19 by taking the crisis as an opportunity for positive reform, promoting greater integration of the world and improving people’s lives through cooperation. She said.

 

Georgi Ieva pointed out that COVID-19 once again shows that the global economy is so interdependent and highlights the value of multilateral cooperation. She called for comprehensive policy support for countries with lagging economic recovery to avoid “dangerous differentiation” in the global economy. At present, the top priority for policy makers is to speed up vaccination around the world, “one shot in the arm is the fastest way for global economic recovery” and bring great value to all countries, she said. The IMF predicts that the faster popularization of vaccines and the end of the new crown crisis can increase global GDP by nearly $9 trillion by 2025.

 

Georgieva stressed that the risks posed by climate change to macroeconomic and financial stability are increasing day by day. When the global economy is striving to get out of the most serious recession since the end of World War II, it is particularly important to seize the opportunity to expand green investment and promote economic transformation, and the efforts made to cope with climate change can bring economic growth and employment.

 

Georgieva said that climate change may bring potential physical risks through natural disasters, and may also bring transformation impact to some industries and enterprises, causing losses to financial institutions. The IMF is strengthening the assessment of climate related financial stability risks, providing policy recommendations and capacity-building support for member countries to deal with climate change, and considering the stress test of the financial system to resist climate risks.