(Yicai Global) Dec. 5 -- China’s global trade reached a turning point this year, said Zhu Guangyao, the country’s vice minister of finance.
The growth of global trade has been slower than economic growth in the past few years and trade has been relatively sluggish.
The global economy will increase 3.6 percent, however, while trade will grow 3.6 percent, the WTO forecasts. An inflection point has emerged as a result.
Zhu Guangyao made these remarks at the Annual Meeting of the China International Finance Society and Yicai Global’s Financial Summit today.
The Federal Reserve stopped buying bonds at the end of 2015 and raised the interest rate, Zhu said. This year, it has raised the interest rate twice and may raise it again this month, while it will increase interest rates three to four times next year. The Fed’s path to interest rate rises is clear: an increase of 0.25 percent each time and steady adjustments, but this does not rule out the possibility of a more substantial future increase.
The global economy has registered sound momentum for the first time this year since the financial crisis, Zhu believes, and expects that 70 percent of countries will achieve active growth this year, while major economies and Russia and Brazil will also register growth, reflecting a steady trend.
“The European Central Bank (ECB) will continue to buy bonds, but the scale of these purchases is on the wane.” The bank will reconsider quantitative easing next September, while the steady economic growth in the Eurozone provides space for the ECB to withdraw from its quantitative easing policy. “The timetable and roadmap for the Federal Reserve’s process of starting to reduce the balance sheet is clear, and this will have a significant impact on global liquidity,” said Zhu.