Interview: China continues to be major engine for global growth, says WEF president

World Economic Forum (WEF) President Borge Brende speaks during an interview with Xinhua at the WEF headquarters in Geneva, Switzerland, Jan. 9, 2024. (Xinhua/Lian Yi)

GENEVA, Jan. 11 (Xinhua) -- China will continue to be a major engine for global economic growth, World Economic Forum (WEF) President Borge Brende has said.

Brende, in a recent interview with Xinhua at the WEF headquarters in Geneva, Switzerland, believes China has enough policy tools to revitalize its economy.

China is pivoting from growth based on investments, infrastructure and real estate into growth based on new areas such as electric vehicles. The country is passing through a period where exports are changing toward more services and digital trade. He noted that China is also the biggest producer of renewable energy equipment.

On the theme of "Rebuilding Trust," the 54th WEF Annual Meeting will take place at Davos, Switzerland, from Jan. 15 to Jan. 19.

According to Brende, there is a lack of trust between nations. "If we don't rebuild trust, we will not be able to collaborate on all the transboundary challenges that we are faced with, such as climate change, future pandemics, cybercrime and cyberattacks," he said.

As the second-largest economy in the world, China can contribute to rebuilding trust because of its significant economic and trade heft and desire to build a more peaceful world, Brende said.

"The steps that China takes are incredibly important for the world," he said.

He said China's role in global trade and climate negotiations is crucial. China has established strong links with the Global South and has shown an increased dedication to preserving global peace and security.

Speaking of global economic trends in 2024, Brende said, "We are cautiously optimistic that things will look better."

According to Brende, global economic growth from 2000 to 2020 was 3.8 percent, and he expects 2.9 percent growth for 2024, with a more optimistic forecast for 2025 and 2026.

Brende believes the global economy is "in a better shape" than a year ago. He explained that global inflation is coming down, which could lead to future interest rate reductions and increased investments.

Brende believes that trade is the engine of global economic growth. Global trade volume only increased by 0.8 percent in the past year, which has dragged down economic growth. He called for defending the multilateral trading system and reducing trade barriers.

Brende said the deterioration of trust impacts peace and security and has economic consequences. "Our hope is that even in a world where nations are competing, they also need to cooperate on the most important topics and come together," he said. 

A logo of the World Economic Forum (WEF) is pictured at the WEF headquarters in Geneva, Switzerland, Jan. 9, 2024. (Xinhua/Lian Yi)

A logo of the World Economic Forum (WEF) is pictured at the WEF headquarters in Geneva, Switzerland, Jan. 9, 2024. (Xinhua/Lian Yi)