Emerging economies contribute 60% of global growth

By Guo Yiming
0 Comment(s)Print E-mail China.org.cn, March 24, 2017
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The 11 emerging-market economies (E11) contributed 60 percent of world economic growth in 2016, having curbed a considerable decline in momentum and generally taken on a "slower but stable" development trend, a report says.

Photo taken on March 22, 2017 shows the site of the annual conference of the Boao Forum for Asia (BFA) in Boao, south China's Hainan Province. The 2017 BFA will be held from March 23 to 26 this year. [Photo/China.org.cn]

Photo taken on March 22, 2017 shows the site of the annual conference of the Boao Forum for Asia (BFA) in Boao, south China's Hainan Province. [Photo/China.org.cn]

The Development of Emerging Economies Annual Report 2017, a routine document launched to review and project progress made by the world's 11 fast-growing economies, was launched on the sideline of the ongoing Boao Forum for Asia (BFA) on March. 23.

Based on an overall analysis of their economic growth, employment and income, prices and monetary policy, international trade, international direct investment, bulk commodities, debt and their financial markets, the report points out that the emerging economies are stabilizing, due to a slow recovery of bulk commodity prices and the gradual unleashing of their economic policy adjustments and reform.

Last year, E11, which includes Argentina, Brazil, China, India, Indonesia, South Korea, Mexico, Russia, Saudi Arabia, South Africa and Turkey, posted an overall growth rate of 3.1 percent year-on-year, outperforming the EU and G7 by a large margin, which grew by 1.9 percent and 1.4 percent respectively.

They have contributed 60 percent of world economic growth, and their share in the world economic aggregate has been on a continuous rise, testifying that the emerging economies still serve as an important driver of global growth.

"At present, there have emerged some positive signs in the emerging economies, such as slower but stable growth and narrowing of their differentiated growth paces, but they still need to take active measures to deal with the risks and challenges resulting from economic downturns and gradually defuse pressures emerging in various fields," argued Zhou Wenzhong, BFA's secretary-general.

Slower growth of labor productivity, the risk of social instability, a climbing debt level, huge foreign exchange market fluctuations, ever-escalating protectionism, uncertain economic policies in the U.S. and other developed economies, as well as various geopolitical risks could be major downside drag for the E11's future development, the report says.

"Of course, those risks may not evolve into real crises," said Yao Zhizhong, vice director of the Institute of World Economics and Politics at Chinese Academy of Social Sciences (CASS), which drafted the report. He remained cautiously optimistic and predicted a 4.5 percent year-on-year increase for the E11 in 2017.

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