CRI听力:Emerging Markets to Slow Pace in 2014

After years of slow economic growth or even recession, some developed economies are showing strength, with recovering housing markets and lower unemployment rates. At the same time, emerging markets such as Brazil and India are experiencing softer domestic demand, and sluggish exports.

China Center for International Economic Exchanges, a think tank under the Commission of Development and Reform, held a monthly forum with the theme of "China and World Economy in 2014" Wednesday in Beijing.

Zhang Yongjun is the senior economist with the Center.

"Developed countries implemented quantitative easing monetary policy a couple of years ago when their economies were bad. That kept capital flowing into emerging economies like Indonesia, India, Brazil, Turkey, South Africa and so on. But now, the US has reduced its bond purchase. As a result, it will be hard for emerging markets to keep international payments balanced because they don't have enough inflow capital to fix trade deficits. "

Chen Wenling, Chief Economist with the Center, says developed economies will play a bigger role in promoting the world economy this year. And emerging markets should react quickly.

"On one hand, emerging markets have to seek for new development mode with innovation and domestic adjustment amid slower growth. On the other hand, it is important that the international community implement a favorable macroeconomic policy, which is not only conducive to developed countries, to make world economy more balanced. "

Meanwhile, Fan Jianping, deputy director of economic forecasting at the State Information Center, believes 2014 will see the many changes in China's economic development.

"If the government lets markets play a decisive role, relations between investment and consumption will adjust. For example, the market should decide where capital and investment goes, and whether it should be used in government projects or private companies. I believe many current twisted relations will be corrected this year. "

The latest forecast of the International Monetary Fund says global growth will accelerate to 3.7 percent this year, from 3 percent last year. China's growth rate is expected to slow down slightly from 7.7 percent last year to 7.5 percent. The IMF also warns China to effectively contain the risks to growth and financial stability from over-investment.

For CRI, this is Li Jing.