In an January interview, Hamid Rashid, a leading economist at the United Nations, expressed optimism about China’s economic prospects in 2023 and its potential to play a significant role in stimulating global growth.
Rashid, who is the chief of the Global Economic Monitoring Branch at the UN Department of Economic and Social Affairs, was commenting on the recently released flagship report, World Economic Situation and Prospects (WESP) 2023.
Rashid believes that all the ingredients for recovery are present in China and that its economy will experience a “robust recovery” in 2023, thanks to its well-aligned fiscal and monetary policies. He noted that China’s economy has favorable conditions to grow as its inflation rate has remained low compared to other countries. Rashid also emphasized the need to invest in productive capacity, promote human capital, and combat climate change to stimulate growth and reduce inflation.
China’s economy plays a crucial role in the global economy, and Rashid pointed out that China’s recovery would benefit many other developing countries. China’s strong trade ties with other manufacturing economies in the region, including Japan and South Korea, mean that those countries would benefit from China’s recovery as well. Moreover, the growth of outbound tourism in China would benefit many countries that depend on the industry, including Malaysia, Thailand, and Indonesia.
Overall, Rashid believes that the global economy faces difficult times, and international cooperation will play a vital role in restoring global confidence. However, with the right policies in place, China can play a significant role in stimulating global growth and helping to restore the world’s economy to pre-pandemic levels.
