The global economy faces an uncertain road ahead as experts debate the potential growth drivers for 2024. Amid anticipated slowdowns in advanced economies, questions arise about how countries can regain resilience and stimulate economic dynamics hindered by geopolitical risks and persistent inflation.
In a recent discussion hosted by CGTN’s Guan Xin, esteemed economists Li Daokui, dean of the Academic Center for Chinese Economic Practice and Thinking at Tsinghua University, and Thomas Sargent, the 2011 Nobel Laureate in Economics, shared their insights on the global economic outlook for the coming year.
Challenges and Opportunities
Li Daokui highlighted the significant challenges posed by geopolitical tensions and the stickiness of inflation. “The global economy is at a crossroads where traditional growth engines are faltering,” he noted. “We need to identify new drivers that can propel sustainable development.”
Sargent emphasized the historical patterns of economic resilience following periods of uncertainty. “Economies have the capacity to adapt and recover,” he said. “Policy measures that encourage innovation and investment are critical.”
Emerging Markets and Innovation
Both experts pointed to emerging markets in Asia as potential bright spots for global growth. Li Daokui underscored the role of technological innovation and digital transformation in these regions. “Asian economies are leveraging technology to create new industries and jobs,” he explained. “This can offset weaknesses in other parts of the world.”
Sargent agreed, adding that collaboration between nations could enhance growth prospects. “International cooperation is essential,” he stated. “Shared challenges require shared solutions, especially in trade and environmental policies.”
Policy Recommendations
The economists suggested that governments should focus on policies that promote stability and growth. Li Daokui advocated for fiscal measures that support small and medium-sized enterprises. “These businesses are the backbone of the economy,” he said. “Providing them with the necessary resources can drive employment and innovation.”
Sargent emphasized the importance of controlling inflation while fostering growth. “Monetary policy must balance price stability with economic expansion,” he remarked. “Central banks play a crucial role in managing this delicate equilibrium.”
Looking Ahead
Despite the challenges, both experts remain cautiously optimistic about the global economy’s ability to navigate the uncertainties of 2024. “With the right policies and international cooperation, we can overcome the headwinds,” Li Daokui concluded.
Sargent echoed this sentiment, stating, “History has shown us that economies are resilient. By learning from the past and innovating for the future, we can foster a more robust global economic environment.”
Reference(s):
cgtn.com
