Africa
A leading Italian global business expert says that China’s strengthening economic recovery is a good sign as the world struggles to emerge from the economic hardships caused by rising prices.
Antonio Majocchi, a professor of global management of the Department of Business and Management at Rome’s LUISS University, said that China’s economy was the second largest in the world.
“It sends ripples across world markets whatever it does.
“If China’s growth slows down, that is a problem for everybody, and if China’s growth increases this is good news for everyone,’’ Majocchi said.
According to him, the impact of China on the world’s economy is of the utmost importance and should absolutely not be underestimated.
“Especially for economies like those in Italy and Germany, which are major exporters and its the same for Europe in general,’’ he said.
According to the country’s National Bureau of Statistics (NBS), the latest news from China has been positive, retail sales of consumer goods in July were up by 2.7 per cent year-on-year, following the 3.1-per cent increase in June.
The NBS said that China’s economy in July “sustained the momentum of recovery’’ in spite the “increasingly complicated and challenging international environment as well as frequent and sporadic domestic outbreaks of COVID-19.’’
Majocchi said that the international situation made the budding global economic recovery from the coronavirus pandemic more “delicate’’ and challenging.
“Everything is more difficult today,’’ he said.
Majocchi said that the global economy had seen higher prices in energy and transport and food shortages, meanwhile, unusually hot and dry weather in European countries and elsewhere had also dealt a blow to many sectors.
According to him, the prices in China are rising more moderately than in Europe.
Annual inflation for July in the eurozone was up by 8.9 per cent according to Europe’s statistics office Eurostat, while U.S. consumer inflation in July surged by 8.5 per cent from a year ago.
According to official data, in comparison, China’s consumer price index in that month was 2.7 per cent higher than in July 2021.
“The main issue now (for the global economy) is inflation, but in China the consumer price index is much lower,’’ Majocchi said.
The professor said that the strengthening of China’s economy was among the global economic factors that helped adjust investment outlook for the coming months and years.
A stabilised situation in China would have a positive impact on economic expectations and demand would grow, which “will have a positive impact on the world economy.’’ (Xinhua/NAN)
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Tags: Antonio Majocchi Covid-19 NBS
