A report issued by the Institute of World Economics at the Shanghai Academy of Social Sciences on Dec. 28 found that the Chinese economy remains a key engine of world economic growth in 2016.

 

The world economy has entered a new growth cycle, according to an analysis of the 2016 world economic outlook published by the Institute of World Economics at the Shanghai Academy of Social Sciences on Dec. 28.

The report found that the global economy in 2016 is still undergoing a weak recovery and that the Chinese economy remains a key engine of world economic growth.

Global economic growth in 2015 fell short of predictions research institutions worldwide had made at the beginning of the year, said Quan Heng, head of the research group for the report and deputy director of the Institute of World Economics at the Shanghai Academy of Social Sciences.

Plagued by low growth, inflation and interest rates as well as high debt, the global economy will develop unevenly, which will lead to weakness and instability in economic recovery, Quan said. As a whole, the world economy in 2016 will still be in a stage of recovery and readjustment following the 2008 financial crisis, he added. 
 

Quan said the global economy in 2016 is still facing many challenges and is expected to experience worse disintegration. Obstacles to economic recovery and stability include the failure of developed economies in coordinating monetary policies, the low level of fluctuation of commodity prices, escalating geopolitical conflicts and fear of terrorist attacks, he said.
 

The report predicts that the world economic growth rate for each year from 2015 to 2017 will be 3 percent, 3.24 percent and 3.43 percent, respectively. And the three statistics are all lower than those predicted by the previous report.
 

The report pointed out that China is committed to shifting from an economy driven by investment and export to a new model of development based on demand, supply-side reform and a focus on service industries.
 

Such a shift will promote the sustainable development of the Chinese economy and strengthen China’s role in leading global economic growth, scholars said.

 

Li Yu is a reporter at the Chinese Social Sciences Today.