According to Xinhua News Agency on September 22, the Federal Reserve announced that it would raise the federal funds rate by 75 basis points to between 3% and 3.25%. This time, rate hike has raised the fund rate to its highest level since 2008. The US rate hike has had a serious impact on the global economic market, with intensified inflation in Europe, Japan's trade deficit, Sri Lanka's economic crisis, etc. In contrast, China's major economic indicators in August far exceeded expectations, and foreign media lamented that China's economy is surprisingly resilient.
The Federal Reserve's continuous interest rate hikes are causing trouble for the global economy
Recently, the Federal Reserve announced a 75 basis point interest rate hike, which is the fifth time the Federal Reserve has announced a rate hike this year. After the outbreak of the new crown epidemic, the US government has successively launched financial "flow-free" plans in order to promote a rapid economic rebound, and the monetary policy has reached an abnormally "loose" level. The end result is that the United States has encountered the worst inflation in 40 years, and most people have begun to fall into economic difficulties. Faced with high prices, Americans began to buy daily necessities only in supermarkets, chose to stay at home and reduce travel during holidays, and began to use public transportation to reduce gasoline expenses at work.
In order to alleviate the domestic inflation crisis, the United States chose to raise interest rates frequently and transfer inflation to other countries, which has had a severe impact on the global economy. Fed rate hike has led to a continued rise in the US dollar exchange rate. Affected by this, currencies in other countries around the world have begun to depreciate significantly, import costs have risen, and they may even face the risk of debt defaults. Especially for developing countries, , the further appreciation of the US dollar will bring a devastating blow to the economies of these countries.
Middle East countries Lebanon announced the closure of banks and imposed strict restrictions on withdrawals. People even regained their deposits in banks through robbery. In addition to developing countries, South Korea and Japan, as developed countries, have also begun to experience domestic crises due to the actions of the United States. The Korean business community suffered a large amount of losses and declared a state of emergency. Japanese people said that their wages began to be refunded 30 years ago and they had to reduce the purchases to maintain their lives. Japanese professors said that the continuous depreciation of the currency will make it difficult to attract outstanding talents from abroad, and ultimately lead to a decline in Japan's national strength. European countries have also begun to fall into Genesis inflation levels.
In comparison, the United States can use the Russian-Ukrainian conflict and the appreciation of the US dollar to gain greater benefits from Europe. The United States has made a lot of money by exporting oil and natural gas to Europe. At the same time, the outbreak of the Russian-Ukrainian conflict has caused European capital to flee to the United States. The United States can use this money to make up for its own loopholes and at the same time weaken the competitiveness of European companies.
China's economy showed amazing resilience
The latest data released by the National Bureau of Statistics of China showed that in August, the national industrial added value of above scale increased by more than 4% year-on-year, and the total retail sales of consumer goods increased by 5.4%, setting the fastest growth rate in six months, completely exceeding the forecast growth rate given by analysts before. 4 months ago, China had announced a series of policies to drive economic development. The above data also fully prove that China's policies are correct and timely and effective. It is not easy for China to withstand pressure in the current complex and severe international situation. Regarding the development of China's economy, foreign media said that China's factory output and retail sales growth rate far exceeded expectations. Under the influence of the epidemic and the current international economic situation, China's economy can still withstand the pressure to recover, showing a positive trend. fully demonstrates the amazing resilience of China's economy.
In addition to the positive development of the domestic economy, China's attractiveness to foreign capital has also been increasing, among which the use of foreign capital in high-tech industries has increased by nearly 34%. South Korea, Germany, Japan and Germany's investment in China is still growing. Although the current economic environment faces multiple challenges, China has attracted a large number of foreign companies to invest due to its economic strength and a series of policies. With the support of internal and external factors, China's economy is gradually recovering and developing, and the economic development prospects are bright.
President of Shanghai University of Finance and Economics Liu Yuanchun said that although the global economy is currently facing huge pressure, China still needs to seize opportunities and find new momentum to drive economic development in an environment of intensifying global inflation. At the same time, relevant departments should also seize opportunities, actively respond to the concerns of the people and enterprises, and better build market confidence.
After the Federal Reserve raised interest rates, countries around the world were deeply affected. In contrast, China is more independent and can formulate policies based on its own situation. The current trade surplus is also very large. Even if it is impacted, it will not depreciate significantly. Faced with pressure, China can also "prescribe the right medicine" and maintain the positive economic development. The economic indicators in August are the best proof.
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