Ayhan Kose, World Bank’s Deputy Chief Economist and Director of the Prospects Group, calls for more investments to accelerate recovery of global economy at a webinar hosted by the International Finance Forum (IFF) on global economic prospects.

As global growth continue to face many challenges, rapid and sustained investment accelerations can lead to faster output and productivity growth, higher trade and foreign direct investment and declines of inflation and poverty as well as improved fiscal and financial conditions in emerging market and developing economies (EMDEs), according to Kose.

The challenge China faces, Kose points out, is how to switch from investment- and export-driven growth to a growth led by consumption and services.

“Strengthening consumer confidence in the short run and undertaking the types of reforms necessary to improve the growth prospects in the long run are going to be critical,” said Kose.  

China’s growth is expected to slow to 4.5% in 2024 as subdued consumer sentiments and slowdown in consumption as well as a continued downturn in the property sector keep weighing on the economy according to the World Bank’s latest Global Economic Prospects

During the one-hour online meeting, Kose presented a panoramic view on global and regional outlook, stressed the importance of investment acceleration in boosting economic growth in emerging and developing economies and highlighted global policy priorities.


 

China’s Premier Li Qiang urged stronger economic and trade ties with the United States during a meeting with the US Chamber of Commerce chief, Chinese media reported on Wednesday.

“Strengthening economic and trade cooperation is a win-win situation for both countries,” said Li during a meeting with Suzanne Clark, president and CEO of the US chamber of Commerce.

Li said decoupling and erecting barriers don’t align with the fundamental interests of both sides.

He added that China welcomes US companies to continue investing in the country.

Clark is visiting Beijing with a delegation of former US government officials.

Home prices in China extend fall in January though the decline is narrowing, official data showed on Friday.

Of the 70 cities surveyed by the National Bureau of Statistics, 56 cities saw new home prices fell from the previous month, six less than the number of cities recorded declines in December.

Meanwhile, 68 cities recorded price drop for existing homes, compared to 70 in December.

New home prices in China’s four largest metropolis fell 0.3% last month.

New and resold home prices generally fell in Chinese cities in January compared to a year ago, particularly in smaller cities where home prices fell 2.1%.

China’s passenger jet C919 landed in Vietnam on Monday, its second international destination after Singapore, according to Chinese media report.

The C919 made its international debut during the Singapore Airshow last week.

After Vietnam, the plane, manufactured by Commercial Aviation Corp of China (COMAC), is scheduled to have demonstration flights in Laos, Cambodia, Malaysia and Indonesia.

China’s logistics activities fell slightly in January, industry data showed on Tuesday.

The index tracking logistic activities came in at 52.7 in January, down from 53.5 in December, data from the China Federation of Logistics and Purchasing.

The federation’s chief economist He Hui said seasonal factors and adverse weather in some parts of the country contributed to the dip in January. 

Japan’s industrial output dropped 7.5% from the previous month, the biggest fall since May 2020, official data showed on Thursday.

All but one of the 15 industrial categories fell in January. Production in vehicles fell 17.8% whereas general-purpose machinery fell 12.6%, data from the Ministry of Economy, Trade and Industry.

An official from the ministry attributed the decline to production halts at Toyota Motor group companies.

The European Union Council adopted rules to make instant payments in the euro currency fully available on Monday.

The new regulation will allow payments in euro-denominated currency within 10 seconds, the EU Council announced.

Banks and other payment service providers which allow standard credit transfer in euro will have to offer the same instant payment service, and charges linked to the service cannot exceed those of standard credit transfer.

 

Chinese airlines will boost their weekly round-trip US flights to 50 per week starting on March 31, the US Transportation Department said on Monday.

Separately, Dai Jun, an official from China’s Civil Aviation Administration said that passengers flights between China and the US will rise up to 100 per week starting from March 31. 

US real gross domestic product (GDP) growth in the fourth quarter of 2023 was revised down to an annual rate of 3.2%, down from an earlier estimate of 3.3% in January, the Commerce Department said on Wednesday.

“The update primarily reflected a downward revision to private inventory investment,” said the Commerce Department.

The growth in the fourth quarter was mainly driven by increases in consumer spending, exports, state and local government spending, nonresidential fixed investment, federal government spending, according to the department.