China Should Not Be The Sole Global Economy Engine

First Published Date: August 3, 2016

In a recent roundtable talk with six global finance leaders, Chinese Premier mentioned that China should not be the only growth engine to carry the global economy. China is still a developing country and should not be responsible for the major world responsibilities.

International Monetary Fund (IMF) recently trimmed global economic growth to 3.1 percent for 2016 and 3.4 percent for 2017 and China’s GDP growth for 2016 to 6.6 percent. All these numbers were reduced by 0.1 percent to reflect recent global conditions.

India Is A Bright Spot

On the other hand, IMF reports that India is a bright spot, as it has the fastest growth rate at 7.5 percent in the global economy. This growth pace should be steady for at least the next three years.

A stable and peaceful political environment is an advantage India enjoys when compared to other countries such as Brazil, China, Russia, and Turkey. Also, foreign investments in India are higher than any other country’s, including China.

Global Economy Consuming Less Energy

The U.S. Department of Energy reports that the consumption of energy such as coal, oil, gas, and even renewable energy is gradually decreasing. This is a good example of how the world is getting better at handling climate change.

Also, carbon emission is decreasing as global economies switch towards renewable energy at a faster pace.

Urgent Call for Global Economies

IMF recently issued an urgent call to implement more growth-boosting policies to put global economies on the right track. IMF suggested the world’s 20 largest economies should maintain relaxed money policies and stay ready to implement contingency plans should things turn worse.

However, the U.S. Treasury believes such a crisis response is not necessary because conditions seem to be improving.

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