World Bank official says global economy in challenging circumstances

Senior Managing Director of the World Bank, Axel van Trotsenburg, stated that the world economy is growing at its lowest rate, highlighting inflation, structural problems, and trade fragmentation as key factors affecting global economic growth.

According to a June World Bank Global Economic Prospects report, global economic growth is projected to hold steady at 2.6 percent this year, well below the 3.1 percent average in the decade before the COVID-19 pandemic.

In an interview with China Global Television Network in Beijing, van Trotsenburg stated that the world economy is now growing at its lowest rate, which will affect export-import performance across all economies.

"The world economy is growing, but at actually its lowest rates compared, for example, to almost 10 years ago. We expect that world economic growth is only 2.6 percent, while in 2010 we were at 3.1 percent. This has, of course, also effects on export-import performance in every economy, including China. China cannot isolate itself from it," he said.

Van Trotsenburg highlighted the challenges faced by developing countries and key economies like Germany, noting the need for more stimulus to support trade growth amid difficult conditions.

"[The] 2.6 [percent of growth] is difficult particularly for developing countries because they will also need more stimulus in order also to grow more their trade. And if that demand is not coming sufficiently, that has negative effect. If you are looking at also in the OECD markets, the U.S. economy is growing quite well. Europe is struggling in some bigger country states, for example Germany -- there they expect a slight negative growth. So these are difficult circumstances," he said.

He highlighted inflation, structural problems, and trade fragmentation as some of the most pressing challenges to global economic growth.

"There are in the last, I would say, 24 months, clearly a lot of emphasis on combating inflation. That meant restrictive monetary policies that may also have had some spill effect on the demand situation. But there are also then structural factors that also influence the performance. Overall, I would say, this is something where we need to watch very, very carefully. In the trade area, I would also argue that we need to be careful about trade. There have been fragmentation tendencies; that is (making it) difficult to have a robust trade. And from trade, a lot of gross stimulus came from it. So, I think we also believe we need to keep a sharp eye on the trade because this is going to be important for the entire world economy," van Trotsenburg said.

World Bank official says global economy in challenging circumstances

Chinese Foreign Minister Wang Yi met with Ian Bremmer, president of the Eurasia Group, in Beijing on Friday.

Wang, also a member of the Political Bureau of the Communist Party of China Central Committee, said that as the world's two largest economies and permanent members of the United Nations Security Council, China and the United States should shoulder the responsibilities of and play the role of major countries.

China and the United States working together to meet global challenges and achieve win-win results serves the interests of the two peoples and meets the common expectations of the rest of the world, Wang noted.

China will respond to all uncertainties in today's world with its own certainty, continue to hold the international moral high ground, and make efforts for the overall progress and development of mankind.

Wang expressed the hope that the U.S. side will earnestly implement the consensus reached by the two heads of state, establish an objective and rational understanding of China, change the mindset of zero-sum game, and work together with China to continue to explore the right way for the two major countries to get along with each other on this planet.

"I hope the U.S. can meet China halfway, embrace a more objective and rational perception of China, change the zero-sum game mindset, and work with China to continue actively exploring the correct way for the two major powers to coexist on this planet," said Wang.

The Eurasia Group welcomes the relationship between the two countries showing signs of stabilization through bilateral efforts, Bremmer said, adding that the company is willing to continue offering suggestions and proposals for the long-term peaceful coexistence between the United States and China, and hopes that the two major countries will work together to maintain a stable international order.

"I believe personally, that the work you have put in, and the work that my friend Jake Sullivan has put in to the relationship between the U.S. and China, the most important bilateral relationship in the world, has been really appreciated. It's really meaningful. And we are in materially a better place now," said Bremmer.

Chinese FM meets president of Eurasia Group