China News Service, Beijing, February 28 (Reporter Xia Bin) At the 2024 Global Economic Outlook Academic Dialogue hosted online by the International Financial Forum (IFF) on the 28th, Ayi, Deputy Chief Economist and Director of the Forecasting Bureau of the World Bank, Ayhan Kose called on emerging economies to increase investment in 2024 to accelerate global economic recovery.
Gauss pointed out that global economic growth will still face many challenges in 2024. Rapid and sustained increase in investment will help quickly restore production, improve labor productivity, promote global trade, drive foreign direct investment, reduce inflation and eliminate poverty, and improve Fiscal and financial conditions in emerging market and developing economies.
Regarding the Chinese economy in 2024, Gauss said that the challenge facing China is to realize the transformation of its growth model, and it should transform from an economic growth model driven by investment and exports to an economic growth model driven by consumption and services as soon as possible.
Gauss agrees with the current policies adopted by China to promote the transformation of consumption and growth models.
He said: "It is crucial for the Chinese economy to enhance consumer confidence in the short term and promote the transformation of the growth model through firm reforms to consolidate expectations for medium- and long-term economic growth."
Goss also mentioned that although the U.S. economic growth will be stronger than expected in 2023, driven by strong consumer demand, high interest rates will inhibit the momentum of U.S. economic growth.
The World Bank predicts that U.S. economic growth will slow to 1.6% in 2024.
Gauss believes that overall, the global economy will be the weakest since 1995 in the first half of 2024.
Growth in major economies will be lower than expected due to regional conflicts and geopolitical tensions, continued high interest rates, and the risk of financial stress.
Global economic growth in 2024 will also be affected by sluggish trade activity.
The World Bank expects the global economy to slow to 2.4% in 2024.
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