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Opinion / From the Press

Global economic recovery will remain weak

(chinadaily.com.cn) Updated: 2013-01-04 22:19

Economic growth in developed and developing countries slowed down in 2012 due to the influence of the global financial crisis.

The International Monetary Fund forecasted that global economic growth in 2013 will only be around 3.6 percent, a little higher than its forecast for 2012. Yet, given the sovereign debt crisis in developed countries, the weak trend of recovery will continue, said an article from the People's Daily.

Developed countries cannot find their way out of the sovereign debt crisis. The debt crisis is not only limited to the eurozone, but is also being felt by Japan and the United States. So far, their solutions are only postponing the further development of the crisis.

The loose monetary policies of developed countries are infectious and will have significant side effects for the global trade balance. To some extent, developed countries are transplanting their failed models to developing countries and less-developed countries.

Emerging markets will not be able to regain rapid growth as seen before the global crisis. The stagnant growth of the new markets will remain for some time. Only after an effective adjustment process and reforms are implemented can these countries become the new engines for the global economic recovery again. It will be a test for the governments of these countries.

The US is in a crucial position to lead the world economic recovery. And we are happy to see that the US is trying its best to keep the stability of its real estate market, as well as use shale gas and other new energies to reform the global energy structure.

The US' reindustrialization process also started a new round of competition among countries to compete for the top of the world industry chain. These are all constructive contributions made by the US for the global recovery.

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