David Malpass, the Governor of the World Bank, said that under the current situation of the international economic slowdown, China is unwilling to provide more stimulus measures, which puts greater pressure on the United States to support international growth.
According to Bloomberg News on Tuesday (September 20), Malpas said in an interview: "In the previous global downside, China will reduce interest rates, and they will increase government expenditure. This time they will increase government expenditure. This time, they will increase government expenditure.Do not do less. "
World Bank warned last week that the tightening wave of radical policies may cause the global economy next year to decline.It is expected that the interest rate decision of many central banks this week will lead to a total of more than 5 percentage points.
In order to suppress inflation, the economy has fallen into a downturn, and some other central banks are no exception.Economists expect that the Swedish central bank on Tuesday will accelerate the tightening of monetary policy and raise interest rates 75 basis points.It is expected that US officials will also increase the cost of lending 75 basis points on Wednesday to continue to suppress inflation.
The World Bank estimates that GDP growth in 2023 will slow to 0.5%, and it will shrink by 0.4%according to per capita calculations, which will conform to the technical definition of economic recession.
Malpas said that a key difference is that China is less active this time to truly stimulate the economy.He said that this may be good for their economy, and in the long run, it is also good, but this means that for the world, the second largest economy has not really moved forward sharply.This has brought a greater burden on the United States.
