Deputy Chief Economist of the World Bank： In 2024, emerging economies should increase investment to accelerate recovery.
China news agency, Beijing, February 28 (Reporter Xia Bin) At the 2024 academic dialogue on global economic outlook hosted by the International Finance Forum (IFF) on the 28th, Ayhan Kose, deputy chief economist and director of the forecasting bureau of the World Bank, called on emerging economies to increase investment in 2024 to accelerate the global economic recovery.
Gauss pointed out that global economic growth still faces many challenges in 2024. Rapid and sustained investment will help to quickly resume production, improve labor productivity, promote global trade, promote foreign direct investment, reduce inflation and eliminate poverty, and improve the financial and financial situation of emerging markets and developing economies.
With regard to China’s economy in 2024, Gauss said that the challenge facing China is to realize the transformation of its growth model, and it should change from the investment and export-led economic growth model to the consumption and service-led economic growth model as soon as possible. Gauss agrees with the current policies adopted by China to promote the transformation of consumption and growth patterns. He said: "It is very important for China’s economy to enhance consumer confidence in the short term, promote the transformation of growth mode through firm reforms, and consolidate the expectation of medium and long-term economic growth."
Gauss also mentioned that although the US economy will grow stronger than expected in 2023, driven by strong consumer demand, high interest rates will curb the momentum of US economic growth. The World Bank predicts that the US economic growth will slow down to 1.6% in 2024.
Gauss believes that overall, the global economy will be the weakest since 1995 in the first half of 2024. Due to regional conflicts and geopolitical tensions, persistently high interest rates and financial stress risks, the growth of major economies will be lower than expected. The global economic growth in 2024 will also be affected by the downturn in trade activities. The World Bank predicts that the global economy will slow down to 2.4% in 2024. (End)
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