By the end of this week, Shanghai will soon welcome central bank governors as well as finance ministers for the first grand meeting of China’s G20 Presidency. It’s going to be an instructive meeting for many reasons.
Currently, the global economy keeps facing considerable short and long challenges. For instance, this year the world has stumbled on rather disappointing growth as well as persistently high unemployment. To add to this, the IMF forecasts that the global economy will most probably grow at 3.4% this year, while the OECD had to downgrade its 2016 growth prediction to 3% from 3.3%.
Considering growing doubt as for the G20’s overall effectiveness, the meeting is crucial for the entire alliance in general. Many analysts point out that the G20 has drastically reduced its positive impact on global economic growth, and this definitely gives China a real chance to revive the organization this year amid the sluggish world economy. The country’s enormous potential for domestic economic management is expected to bring evident benefits to global markets.
However, there’re evident challenges for China’s domestic economic policymaking and this contributes to the known risks to the world economy this year.