China to play "critical role" in global economic recovery and development in 2023, says Brazilian economist
Most economists agree that China will play a critical role to global economy in 2023, says a Brazilian economist.
"China's role will be critical to global (economic) recovery and development in 2023, and there is a consensus among most economists on the stagflation outlook for 2023," said Hsia Hua Sheng, associate professor of international finance at the Getulio Vargas Foundation, a think tank in South America, in a recent interview with Xinhua.
Noting that the Chinese government enjoys "the confidence of the Chinese people to promote economic growth and social organization quickly and efficiently," Hsia summarized four aspects that the Chinese government has done in 2022 to sustain domestic economic growth and contribute to global economic development.
The four aspects included seriousness in controlling COVID-19, continuous export of deflation in the world by migrating its production to more high value-added productions and services, continuous high demand for global products and services by encouraging imports from all over the world, as well as increasing participation in global and regional trade in terms of Chinese currency.
"No country has a production chain as complete, sophisticated and efficient as China, capable of producing quality products and services with low cost in an extremely short time," said Hsia.
With respect to global economic growth in 2023, the economist believed that the performances of China and the Europe would be "fundamental" for Latin American economies to recover, as they would help increase tax revenues of Latin American governments to pay for their subsidies and social programs.
Further recovery of Chinese economy, reduction of the U.S. interest rates, and a solution to the conflict between Ukraine and Russia would reduce the risk of global stagflation in 2023, said Hsia.
He also indicated that rearrangement of global supply chain and greater engagement in environmental affairs and sustainability by public and private investors would help global economic growth as well.
