RIO DE JANEIRO, Aug. 18 (Xinhua) -- Thanks to effective incentive policies by the Chinese government, China's economic growth is projected to exceed market expectations this year and be a boon to the global economy, a Brazilian economist said.

China is a major driver of global economic growth that "has boosted international investors' confidence and reduced international financial market volatility," Ronnie Lins, director of the China-Brazil Center for Research and Business, told Xinhua in a recent interview.

It effectively defended the global supply chains from disruptions and facilitated global trade and economic cooperation, he added.

While the International Monetary Fund forecasted a 5-percent growth for China's economy in 2024, the country's gross domestic product grew 5.3 percent year on year in the first quarter, surpassing expectations.

Lins said he believes China's development of new quality productive forces has stabilized its economy, since it prompts prudent monetary and fiscal policies such as adjusting interest rates to stimulate domestic demand, mitigating deflation risks and encouraging innovation and development.

Thanks to innovations in emerging areas such as green technology and digital finance, China has ensured stable economic development and brought benefits to the globe, Lins said.

"China has played a crucial role in supporting sovereign debt restructuring in low-income countries, and has also contributed significantly to leading the global response to climate change," he said.

The stability of China's economy is also crucial to sustaining global supply chains, boosting investor confidence, and enhancing international cooperation, he added.

Financial market players have recently anticipated a sharp rise in global capital flowing back into Chinese assets. Up to 800 billion U.S. dollars in foreign funds are expected to be invested in the Chinese bond market this year, according to the economist.

"This is because the Chinese economy has demonstrated strong resilience amid global volatility, exceeding market expectations," Lins said, noting that China's robust economy and strong export growth offer a "safe haven" for international investors.

"China's trade has proven to be very resilient even in the face of increasing global pressures," he said. "The growth of Chinese exports helps boost the economic growth of partner countries by providing them with competitive and high-quality products."

Lins said that China has promoted new free trade zones, streamlined customs procedures, and improved the flow of goods. Stable monetary policy and a strong RMB have boosted the appeal of Chinese products, driving significant trade growth with the Association of Southeast Asian Nations, Latin America, Africa, and Central Asia, he added.

"Thanks to incentives, continuous innovation and market diversification, China is in a good position to maintain the growth of foreign trade," Lins said.

Source: Xinhua

Editor: huaxia

2024-08-18 20:58:00