International organizations shared concern about economic risks
Updated 22:13, 09-Nov-2018
By CGTN's Xia Cheng
Chinese Premier Li Keqiang and the leaders of the international organizations met with the press after their round-table discussion. There are many concerns since the trade tensions are escalating while the global monetary condition is tightening.
The International Monetary Fund (IMF) predicts that Chinese economic growth would decline to 6.2 percent next year due to protectionism. The managing director of IMF Christine Lagarde cited the world is being enveloped by huge shadow.
"Cloud number one is tension on trade. Cloud number two-monetary tightening and its impact on the financial and financing costs for a sovereign, corporate and household forward. Cloud number three is the vulnerabilities of some of the emerging market economies, where we don't see at this point a contagion but will be the most vulnerable suffering from the two clouds I have just mentioned," she said.
Meanwhile, World Bank President Jim Yong Kim suggested that all countries make sure monetary and fiscal authorizes focus on reducing vulnerabilities.
“We think that this is extremely important for every developing country to focus on investments in human capital. Finally, every country should really focus on creating conditions so they will be able to crowd in more private sectors financing for infrastructure investment,” he added.
The World Trade Organization (WTO) reminded the new tariffs announced this year have already covered hundreds of billions of US dollars in trade. “Continued escalation is a possibility, many WTO members in the business community, in general, around the world, are beginning to speak up for trade and the multilateral trading system. China is clearly one of them,” said Roberto Azevedo, WTO's director-general.
The IMF commented that China's long-term opening up in the trade and investment sectors could raise 15 percent of Asian GDP.
“The trade is now growing at three percent. It's not contracting, but it's growing very modestly, three percent. It should be growing double the rate of the world economy. That means 7.5 to eight percent. It should be the locomotive. And it is not being the locomotive for the reasons we know. So I would join in the voices of the vigorous defense of multiculturalism,” said Angel Gurria, secretary-general of the Organization for Economic Co-operation and Development (OECD).