Thursday, September 14, 2023 – 1:33 p.m
I am Khizr Nashar.
Sharjah, September 14 / WAM / Professor Fan Gang, Director of the National Institute of Economic Research of China, said that there is a close connection between the phenomenon of climate change, inflation, and economic diversification efforts.
In statements to the Emirates News Agency, WAM, on the sidelines of the International Government Communication Forum in Sharjah, the economic expert called for strengthening international cooperation and rethinking the global financial system in order to deal with these challenges.
He stated that the current investment in green energy is not sufficient, which requires more government support for investors, noting that some short-term investments do not reach their desired goal, while others only cover the cost, and for this reason we need government support.
Fan Gang stressed that the twenty-eighth session of the United Nations Conference of the Parties (COP28) is an important opportunity for all parties to assume their responsibilities towards the growing climate challenges and find innovative ways to enhance multilateral cooperation between governments and the private sector.
Regarding the challenges of inflation at the global level, he said that there are two aspects of inflation that governments must deal with, which are demand and supply, adding that government officials usually focus on the demand side, such as increasing interest rates, to try to reduce demand, at the expense of thinking about increasing the level of supply. .
He explained that inflation results from an imbalance between supply and demand. If supply is low, the price will rise. Therefore, governments must also work to increase supply by rethinking the global financial system and supply chains.
Regarding the economic diversification efforts made by various countries of the world, Professor Fan Gang said that countries that depend on natural resources need to make efforts to diversify their economies, and he pointed to the UAE as an example of countries that are achieving progress in this field.
Dina Omar
2023-09-14 09:34:37
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