Global leaders warn against split in world economy at IFF

China still a main force in tackling challenges

Leaders from international organizations, executives of major global financial institutions and experts on Sunday called for open and pragmatic cooperation among countries to jointly deal with multiple challenges and put the global economic recovery back on track.

At the International Finance Forum (IFF), which closed on Sunday, they also commended China’s experience in maintaining financial stability amid high inflation globally and huge contribution to global economic development.

Geopolitical tensions are making governments pay more attention to strategic competition and national security than their common economic interests brought about by the free flow of commodities, capital and technologies, casting shadows on medium- and long-term global economic growth, Han Seung-soo,

chairperson of the Council of Presidents of the UN General Assembly and co-chairman of the IFF, said at the forum held in Guangzhou, South China’s Guangdong Province.

In a speech to the forum, UN Secretary-General Antonio Guterres said that the opportunity for countries to deal with inflating living costs, rising interest rates and the imminent economic recession is slipping away. He called on countries to rebuild trust between developed and emerging market economies, noting that a sustainable, fair and prosperous future is expected with concerted efforts.

The global economy has faced increasing downward pressure amid the pandemic, growing geopolitical risks, disrupted global industrial and supply chains, soaring inflation and debt problems, among others.

In its latest World Economic Outlook, the IMF downgraded the forecast for global economic growth to 2.7 percent in 2023, the weakest growth profile since 2001 except for the global financial crisis and the acute phase of the COVID-19 pandemic, prompting more countries to focus on economic recovery.

Compared with other major economies, China has achieved relatively fast GDP growth with domestic inflation kept at a low level. Between 2013 and 2021, China’s contribution to global economic growth reached 38.6 percent, higher than the US’ 20 percent.

IFF Vice President Zhou Hanmin said good harvests and stable energy prices, along with steady economic growth, stable employment and an effective monetary policy, makes China a ballast stone for the world economy and a main force in solving global industrial and inflation problems.