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China’s sound economic growth is vital for world economic development

This year, the International Monetary Fund (IMF) has repeatedly lowered its expectations of world economic growth, mirroring the slowdown in world economic development.
World GDP forecastThe IMF predicts that the world economy will grow at 3.3% this year. The prediction indicates that the world economy is recovering but that overall global demand is limited and the international financial system is unsteady. If this prediction finally comes true, global economies have to be repositioned.
Generally speaking, new emerging economies are booming, propping up the world economy. It is estimated that the average economic growth of emerging economies and developing economies will reach 4.4%, higher than the global average. Asian economies are predicted to grow at 5.5%. Such rapid growth is attributed to increasing exports, investment and domestic demand.
The IMF has also predicted that China’s economic growth will stand at 7.4% this year, and 7.1% next year. The main causes for the slower growth: first, the government is beginning to control spiraling credit and local debt, leading to mobility and therefore slowing down economic growth; second, the fall in investment in property has a negative impact on economic growth.
Since the government has taken effective measures to control its spiraling debt, there is no need to worry about its potential debt crisis. Furthermore, the government has also taken steps to advance infrastructure construction and promote employment growth. China, the second largest economy, plays a vital role in the world economy.

This article was edited and translated from 《中国稳健增长对世界很重要》,
Source: People’s Daily,
Author: Zhu Min