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What have we learnt from the G7 summit 2017?

Geraci was a guest speaker at CGTN dialogue to comments on the issue.

G7 did not achieve its main goal because it was squeezed in between the Silk road summit in Beijing and forthcoming G20 meeting in Germany, and of course it was of the interest of Germany to make sure that the G7 held in Italy was not going to be successful so that Germany could get all the credit for any international agreement during her G20.

Manufacturing 2025 works on

China’s economy is likely to grow by 6.8% year on year in the first quarter of 2017, driven by increasing production activities and investments, according to a report by National Academy of Economic Strategy (NAES). The positive trend seen in 4Q 2016 has continued into the first quarter of 2017. Industrial production, fixed assets investment, real estate and infrastructure development have all gone up. It will be very unusual for China to beat its own 6.5% as estimate. However, if the first quarter of the 2017 really were to post 6.5% GDP growth, that would be a very good result for the economy. And, more importantly, for the confidence that world economy may have on futures perspectives of China.

Bagnai on FT discussed Euro-exit for Italy

Alberto Bagnai said that there should be a controlled end to the euro. He is a professor at Pescara University who is one of the leading Italian advocates of leaving the euro. My main comment is that if Italy remains in the Eurozone, it will be very difficult, almost impossible, for Italy to escape the current economic crisis. Indeed, things may get worse over time. If however, Italy decides to exit the Eurozone, there is a chance. It does not mean that Italexit will bring prosperity, but it will give Italians a chance.

CPPCC/NPC: Less emphasys on economic issues, as I argued before

Since last year, I have argued that economic growth in China would take a less and less important role in China’s political agenda. My view is that Chinese policymakers are well aware that growth cannot be sustained for the foreseeable future and are therefore looking for new objectives and for a new narrative that can maintain social stability. It is a bit like an ex-post rationalization of a problem: “Given that GDP growth cannot be sustained, let’s play down the importance of the economy and focus on other goals so that we can continue to meet those – new – objective”. The output from the Two Session seems to go in this direction.