Fact Check
Strength of synergy
Editorial  ·  2022-06-24  ·   Source: NO.26 JUNE 30, 2022

Halfway through 2022, the global economy is not looking as bright as people had hoped for at the beginning of the year. The impact of COVID-19 on the global economy is now more serious than that of the international financial crisis in 2008. Against this backdrop, the United States, the world's largest economy, faces the worst inflation in decades, and its unilateral actions to combat inflation are delivering new shocks to the already sluggish global economic growth.

The pandemic has hurt the global supply chain. Waning supplies, courtesy of a worldwide shutdown, and the resulting declines in capital goods demand, trade stability and domestic and international investment, are ultimately reflected in a deteriorating economic growth.

The negative spillover effect of the U.S. Federal Reserve's monetary policy is likely to trigger foreign capital withdrawal, debt crises and complications stemming from exchange rate fluctuations in emerging markets, particularly in those countries that heavily rely on the inflow of foreign capital.

The Chinese economy also suffered great pressure in the first four months of this year. Fortunately, a series of measures adopted by the Chinese Government to coordinate COVID-19 control and economic development have become effective. Major economic indicators in China have seen remarkable improvement since May, indicating economic recovery momentum and boosting global economic growth.

In the context of economic globalization, economies are increasingly interdependent, and no country can solve its economic trials by merely relying on itself.

Multilateralism is a fundamental principle all countries should adhere to in the creation of an open world economy. The international community must strengthen the "soft connectivity" of development policies and international rules and standards, reject attempts at decoupling, supply disruption, unilateral sanctions and maximum pressure, remove trade barriers, and keep global industrial and supply chains stable to ease the pressure on world economic growth.

It is not yet clear where the world economy is headed, but the strength of synergy will always be greater than that of scattered forces.

China Focus
Special Reports
About Us
Contact Us
Advertise with Us
Partners: China.org.cn   |   China Today   |   China Pictorial   |   People's Daily Online   |   Women of China   |   Xinhua News Agency   |   China Daily
CGTN   |   China Tibet Online   |   China Radio International   |   Global Times   |   Qiushi Journal
Copyright Beijing Review All rights reserved 京ICP备08005356号 京公网安备110102005860