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China's economic slowdown is dragging down the rest of the world
On GZERO World, Ian Bremmer asked economist and author Dambisa Moyo to grade the health of the global economy amid ongoing geopolitical crises and Europe and the Middle East, stalled Covid recovery, and a major economic slowdown in China. Her answer is more optimistic than you might expect, given so much uncertainty and volatility around the world. It’s true that the US economy has shown surprising resiliency, which is why the world avoided a global recession in 2023.
But China’s economic slowdown is still a significant drag on the overall global outlook. Structural issues within the Chinese economy–a collapsing real estate sector, high levels of local government debt, the flight of foreign investment–have a major impact on the world’s finances because of China’s role as the largest foreign direct investor to the developing world, as well many developed economies. But so far, the policy response from the central government has been relatively slow and piecemeal compared to expectations.
Watch the full episode: Is the global economy finally on the right track?
Catch GZERO World with Ian Bremmer every week at gzeromedia.com/gzeroworld or on US public television. Check local listings.
Is the global economy finally on the right track?
How’s the global economy doing… really? When it comes to the world’s post-COVID recovery, it’s a tale of two economies: the United States and everyone else. On GZERO World, Ian Bremmer sits down with economist and author Dambisa Moyo for a hard look at the health of the world’s finances and the impact of geopolitical crises in Europe and the Middle East on trade flows and inflation.
Right now, US indicators are strong, but Germany and the UK are slipping into mild recessions, and China’s collapsing real estate sector, local government debt, and exodus of foreign investment is dragging the world’s second-largest economy into stagnation. Not to mention, Global South countries are holding record amounts of debt. So what does it all mean moving forward? Is the global economy still shaking off its post-Covid hangover or are some of these problems more entrenched?
“We need to be growing at 3% per year in order to double per capita incomes in a generation which is 25 years,” Moyo says, “Most of the global south is growing below that number, materially.”
Ian Bremmer and Dambisa Moyo unpack the confusing state of the global economy, China’s economic woes, and where they see the biggest potential for growth in developing economies during the next decade.
Catch GZERO World with Ian Bremmer every week at gzeromedia.com/gzeroworld or on US public television. Check local listings.
- China’s economy in trouble ›
- Ian Explains: Why China’s era of high growth is over ›
- Struggling for economic progress as global recession looms in 2023 ›
- Dambisa Moyo: Europe's energy transition needs more than a "band-aid solution" ›
- The unintended effect of US-China economic breakup ›
- What saved the global economy from another Great Depression? ›
- Global economy headed to a recession ›
- What geopolitics stories could still blow up the global economy? ›
The global economy: good news and bad news from economist Dambisa Moyo
Listen: In the latest episode of the GZERO World Podcast, Ian Bremmer sits down with economist, author, and member of the UK parliament’s House of Lords Dambisa Moyo for a hard look at the health of the world’s finances, the impact of geopolitical crises in Europe and the Middle East on trade flows and inflation, and how China’s economic woes are impacting everyone else.
Right now, US indicators are strong, but Germany and the UK are slipping into mild recessions, and China’s collapsing real estate sector, local government debt, and exodus of foreign investment is dragging the world’s second-largest economy into stagnation. Not to mention, Global South countries hold record amounts of debt. So what does it all mean moving forward? Is the global economy still shaking off its post-Covid hangover or are some of these problems more entrenched?
Subscribe to the GZERO World Podcast on Apple Podcasts, Spotify, Stitcher, or your preferred podcast platform, to receive new episodes as soon as they're published.
“GZERO World with Ian Bremmer” season 5 highlights
“GZERO World with Ian Bremmer,” our weekly global affairs program, is now in its fifth season on US public television. Over the past five years, the program has brought you interviews with heads of state, newsmakers, and leaders of industry. Our mission is to help you make sense of the world and the people and events shaping politics today, and there’s no better place to do that than on public television. For two decades, PBS has been named the most trusted brand in US television.
Here are some highlights from recent interviews, stories from the field, and, of course, Puppet Regime. Be sure to check out Ian’s interview with Utah Sen. Mitt Romney, which begins airing this Friday, Feb. 3, all over the US. Check your local listings for our program schedule.
Global economy headed to a recession
Most of the global economy is more likely than not headed toward a recession in 2023. But don't only blame it on inflation and Russia's war in Ukraine.
The economic slowdown this year "is an acceleration of already structural problems around growth, that really started before the pandemic," renowned global economist, Dambisa Moyo tells Ian Bremmer on GZERO World.
Moyo says global inflation is not going anywhere, as the likelihood of a worldwide recession looms large.
Although most of the world understands that they need to transition to cleaner energy, in the short term they still rely on “a hundred million barrels of oil every day.” Europe is creating what Moyo calls, an “industrial Band-Aid solution,” rather than long term solutions to rely on energy from other countries. They discuss how these combined threats will affect the world economy this year.
This interview was featured in a GZERO World episode: "Struggling for economic progress as global recession looms in 2023" on January 9, 2023.
- The unintended effect of US-China economic breakup ›
- Dambisa Moyo: Europe's energy transition needs more than a "band-aid solution" ›
- Struggling for economic progress as global recession looms in 2023 ›
- Podcast: China's economic head start & a world accelerating into recession ›
- The global economy: good news and bad news from economist Dambisa Moyo - GZERO Media ›
Dambisa Moyo: Europe's energy transition needs more than a "band-aid solution"
Most countries around the world understand that sooner or later they will need to transition to using more clean energy. But in the meantime, they still rely on over a hundred million barrels of oil per day.
What's more Russia's war in Ukraine has underscored our dependence on fossil fuels for energy.
“We hadn't anticipated that there'd be a war that would create these shocks. And that puts us slightly offside,” renowned economist Dambisa Moyo tells Ian Bremmer on GZERO World.
And what's the right way to move forward? For Moyo, Europe needs to ditch what she calls "industrial band-aid solutions" instead of the structural reforms needed to kick the Russian energy habit.
Watch the GZERO World episode: Struggling for economic progress as global recession looms in 2023
The unintended effect of US-China economic breakup
The US and China are moving into creating separate economic worlds for each other. And that won't be easy because the two economies are more closely linked than many people understand.
Unlike with Russia, which the West has almost completely isolated after invading Ukraine, we can't just stop trade with China, renowned economist Dambisa Moyo tells Ian Bremmer on GZERO World.
What's more, the US-China economic decoupling will have big implications for the developing world, where 90% of the global population lives. Moyo says that the US might lose out to China, which is fast becoming more appealing to developing nations.
If you want a growth story and are looking for investment, she adds, "the China story is still quite attractive."
Watch the GZERO World episode: Struggling for economic progress as global recession looms in 2023
Why China is leading economically: infrastructure, energy, & tech
Most of the global economy is more likely than not headed toward a recession in 2023. But don't only blame it on inflation and Russia's war in Ukraine.
The economic slowdown face this year "is an acceleration of already structural problems around growth, that really started before the pandemic," renowned economist Dambisa Moyo tells Ian Bremmer on GZERO World.
Among the G-20 economies, the only country that has been serious about industrial and strategic policies to address those problems is China. That's why, she says, many Western nations were so shocked by the economic fallout of COVID.
For Moyo, for instance the US didn't have an off-the-shelf plan to respond to the pandemic. Still, she sees an opportunity for a reset in Western capitalism.