Boao Forum 2019: Experts on the global economy in 2019

World
Europe

02:18

Day one of the 2019 Boao Forum kicked off with Common Development for Asia in mind. But the first round of discussion after the release of four major reports this morning was one on the global economy. The World Bank and International Monetary Fund have both lowered global growth forecasts for the next two years. What do the experts say it means? Details from CGTN's Yang Chengxi.

With the BOAO Forum underway, panelists were polled on what they think the world has more of right now. Certainties, or uncertainties. The result was almost 50-50.

HANS-PAUL BURKNER, CHAIRMAN BOSTON CONSULTING GROUP "Whenever the IMF lowers growth forecasts, do not overreact. We should look at future growth objectively."

But one of those from the uncertainty camp was none other than the Deputy Managing Director of the IMF.

ZHANG TAO, DEPUTY MANAGING DIRECTOR INTERNATIONAL MONETARY FUND "I think everybody know we are facing the trade policy tensions. Second uncertainty is we may face the financial tightening up in a more rough way."

YANG CHENGXI BOAO HAINAN "While panelists agree that policymakers should 'do the right thing', some say it is not always easy, especially with polarizing domestic politics in many countries leading to scenarios like Brexit."

Europe's uncertainty level is high, according to Michele Geraci of Italy's Ministry of Economic Development. But he says one certainty for Europe is deeper cooperation with China.

MICHELE GERACI, UNDERSECRETARY OF STATE MINISTRY OF ECONOMIC DEVELOPMENT, ITALY "We came the first G7 country to join the Belt and Road Initiative is because want to catch up with time lost in the past."

Looking forward, most of the panelists bank on the development of technologies like AI to drive growth. While some are sounding off about the impact technology will have on the job market, the majority expect the new technologies to keep productivity high and keep costs low.

YCX, CGTN, BOAO, HAINAN RPOVINCE.