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Global Economic Growth

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  • Global Economic Growth

    The outbreak of coVID-19 has slowed down the pace of global economic growth, become a catalyst for the restructuring of global industrial chain, and thus changed the trend of international financial cooperation.Future will range from global to regional financial cooperation, cooperation from promoting development goal to protect the livelihood of the people, and at the same time, the risk tolerance of financial cooperation will be greatly reduced, this requires strengthening the financial infrastructure construction such as the data sharing platform for attention, USES financial technology means to break the ills of economic and financial cooperation, promote the healthy development of international financial cooperation.
    The restructuring of the global industrial chain will promote the regionalization of financial cooperation.Finance serves the economy. Where the industrial division of labor goes, there is a need for financial cooperation.
    Against the backdrop of the trade game between China and the US and the coVID-19 outbreak, the global industrial chain between developed and developing countries and across the Eastern and western hemispheres in the past is now facing an important turning point, which also means that the international financial cooperation based on economic globalization will change.
    As for the trend judgment of industrial chain reconstruction, the industrial chain is mostly transformed from global industrial chain to regional industrial chain, looking for substitutes in neighboring countries or markets.Based on this judgment, we believe that in the coming period of time, international financial cooperation will also show the characteristics of transformation from global financial cooperation to regional financial cooperation.
    International financial regulatory rules established purpose is to provide fair and uniform market environment for global finance, however, because of the different legal basis and accounting standards, political and regulatory environment of collision, and the development level and characteristics of different countries and regions have differences, leading to the international financial regulatory cooperation faces many obstacles, difficult to implement in concrete practice.
    Thus, it is anticipated that more extensive and close financial cooperation will be established in the future between countries at similar stages of development and with high mobility, as is already evident in the exemption of the TLAC rule for emerging markets.
    For a long time in the past, the goal of international financial cooperation was more to promote global economic cooperation and accelerate economic growth, while for sustainable economic development, providing financial needs for vulnerable groups and other aspects were mostly slogans.After the coVID-19 outbreak, cooperation in featured financial fields such as inclusive finance and green finance may become more extensive and become the main theme of financial development for a long time to come.
    International financial cooperation will be more inclusive.In the coVID-19 outbreak, the most financially affected groups are mainly small and medium-sized enterprises
    and individual residents, which are precisely the focus of financial inclusion services.
    How to explore a new path of financial cooperation, make financial on the premise of maintaining commercial sustainability, benefit everyone, especially those living in low income level, health condition is poorer areas, how to use financial change their lives, pratt &whitney sunshine finance society, may be in the future for a long time to become the main task of the international financial cooperation.
    International financial cooperation will become greener.After the outbreak of the epidemic, all countries generally adopted quarantine measures such as suspension of production, restriction of entry and exit. Although these measures largely led to the economic downturn, it was also found that during the period of suspension of production, the environmental index significantly increased and the living environment greatly improved.
    If the Outbreak of the Asian financial crisis was a reminder that financial risk prevention should not be done in a beggar-thy-neighbour manner, the coVID-19 outbreak has largely had the opposite effect.The speed of the outbreak is partly inversely proportional to the degree of physical isolation, which makes it natural to assume that isolation and isolation are the best way to protect against financial risks.
    Although the financial sector and health care are not simply one thing from another, isolation is only a last resort.However, we believe that in the long period after the outbreak, global financial institutions will have less incentive to actively engage in cross-border financial cooperation, and their tolerance f
    or cross-border business risks will be significantly reduced.
    In this context, it is necessary to national financial regulators and cross-border trade associations and other third parties play a role in promoting the big platform and, increased information sharing between different parts of the financial institutions, reduce the worries of the financial institutions to the business and regulatory environment, to promote cross-border financial cooperation in the direction of the healthy and orderly development.
    During the epidemic, many countries that spread late missed the opportunity to control the epidemic because they ignored the epidemic data released by the countries that discovered early. This is a concrete manifestation of the lack of trust, and the outbreak of the epidemic has also pushed this distrust to a high level.How to turn this distrust into trust? From the perspective of financial cooperation, the establishment of financial infrastructure will break the barriers of trust and lay a good foundation for financial cooperation.
    The outbreak has once again demonstrated the importance of establishing a cross-border epidemic data sharing platform, as well as in the financial sector.Only by establishing clear data standards, improving cross-border data sharing mechanism, and building cross-border financial data sharing platform on the premise of ensuring financial security, can finance maximize the utility of resource allocation in economic activities and provide sufficient capital requirements for economic development.
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