World heading for global recession?
Economists are advising world economies to brace for the worst global recession since the Great Depression that happened in the 1930s.
With that said, annual meetings of both the International Monetary Fund (IMF) and World Bank commenced in Washington this week.
The IMF presented its latest World Economic Outlook quarterly report at the meeting. The report predicts world GDP will contract by 4.4% in 2020.
GDP is the acronym for Gross Domestic Product. It is the monetary value of all goods and services made in a country during a specified period (quarterly or one year). GDP is an economic indicator to represent the “economic health” of a country. In the simplest form, GDP is an indicator of how rich or poor a country is.
IMF’s latest World Economic Outlook report
The updated World Economic Outlook shows a slight improvement compared to the report released in the previous quarter, June. However, the IMF still warns of a “long, uneven and uncertain” on the road to recovery from the global COVID-19 pandemic.
The only world economy that shows positive growth in 2020 is China. According to the IMF report, China’s GDP is predicted to expand positively by 1.9 percent this year.
IMF’s Managing Director speaks
Chinese state owned CGTN (China Global Television Network) secured an exclusive interview with the Managing Director of the IMF, Ms Kristalina Georgieva recently.
Ms Georgieva gave the IMF’s opinion on the global economic recovery from the COVID-19 pandemic. She also mentioned why the IMF thinks China may be the forerunner to world economic recovery.
The IMF Managing Director said, “China put in place massive fiscal and monetary stimulus. And China has been very effective in containing the spread of the virus.”
Ms Georgieva concluded saying, “China’s growth for this year…This is going to be good for China. It is also good for the world economy.”
Prominent leaders at CIFTIS share IMF’s opinion
The recent 2020 China International Fair for Trade in Services (CIFTIS), was held offline in Beijing and online. It saw prominent leaders share the same opinion about China’s lead in stimulating global recovery.
The President of the French Chamber of Commerce, Christophe Lauras, said, “We believe China is the world leader in stimulating the global recovery.”
Lauras elaborated by mentioning China’s good progress in terms of market access. He also sees the country as a place of great opportunities for French “key players”, and emphasized potential bilateral trade saying, “The growing needs of Chinese society can only create a lot of opportunities for French companies.”
“As you may know French companies are very advanced in the fields of IT, artificial intelligence, digital gaming, financial services, sustainable development services. We also have a lot of knowledge in French in childhood and elder services. So in all these things we obviously see a lot of opportunities for companies to grow in China.”
Dutch ambassador to China, Wim Geerts, said economic recovery from the pandemic requires free trade and an open economy.
Geerts said, “It is good to see that we are now on the road towards recovery. A speedy economic recovery requires open economies, free trade and a rules-based international system.”
China and the EU are in negotiations on the Comprehensive Agreement on Investments. This is an excellent example of the above strategies coming into place.
15th October 2020 22:30