By Li Yan and Bai Yang
The World Bank forecasts a 2.7 percent growth for world economy and 6.5 percent growth for Chinaâ€™s in 2017, according to the organizationâ€™s latest World Economic Prospects on January 10. Experts believe that Chinese economy will achieve a stable performance this year while maintaining progress, once again becoming the locomotive of the global economy.
Emerging markets and developing countries are expected to see a 4.2 percent rise in their economy, contributing 1.6 percent to the global growth, the report says.
“The development of world economy in 2017 continues to rely on emerging economies,” Yu Miaojie, deputy dean of the National School of Development under Peking University, told People’s Daily. Developed economies and emerging economies are the two engines that drive the global economic growth. The US, the EU and Japan represent the developed economies, while the emerging economies include China, Russia, Brazil, India and South Africa.
The world economy is still full of uncertainties, said Yu, pointing out the possibility of more black swan events. He predicted that the uncertainty of the elections of Germany and France would exert significant impacts on global economy.
According to Yu, the sluggish economy of Europe and the de-globalization trend of US in its economic policies are the two major negative factors threatening the global trade liberalization.
However, the developing countries led by China have showed a signal of steady development in the new year. It is expected that emerging countries, with China as the core, will drive the global economy in 2017.
Yu noted that the US would set up more trade barriers after Donald Trump takes the office. As a result, international trade friction is expected to rise. Meanwhile, Brexit and migrant crisis in Germany are likely to further hurdle the European economy.
Besides, with an expected growth of 0.6 percent, it’s almost impossible for Japan to be the mainstay.
On the contrary, China’s economy will achieve a stable performance while securing progress thanks to its continuous supply-side reform that centers on the improvement of productivity. At the same time, the country will enjoy an expanded domestic market, growing consumption and increased imports as well. In addition, more Chinese enterprises are expected to enter overseas market with sharpened competitiveness, increasing the country’s greenfield investment. As a result, more jobs will be created in the investment destinations.
Despite the uncertainties in 2017, China, with its large size of economy, high-speed growth and the spirit of mutual-benefit and win-win cooperation, will become a leading force to revitalize global economy. More and more countries have echoed China’s proposals such as “Belt and Road” initiative, Regional Comprehensive Economic Partnership and South-South Cooperation. In one word, China will play an irreplaceable role in the economic development of Asia-Pacific region, and even the world at large.