US rate hikes worsening already struggling world economy

“The rapid appreciation of the US dollar has led to the depreciation of 36 currencies by at least one-tenth. This has left many developing countries in a bitter economic recession caused by currency depreciation, capital flight, the soaring cost of financing and debt repayment and imported inflation”, said Chinese Foreign Ministry Spokesperson Zhao Lijian on a regular press conference Thursday.

The already struggling world economy is taking yet another toll from the Federal Reserve’s rate hikes. Countless families were plunged into poverty overnight. The Wall Street Journal also pointed out recently that the dollar’s rapid rise is causing global economic woes.

On the other hand, as the largest emerging economy, China is a key locomotive and stabilizer of world economic growth. “The China Economic Update released by the World Bank in June gave a positive review of China’s effective fiscal and monetary policies. During the China International Fair for Trade in Services this year, World Bank officials also said that China’s latest measures of further opening-up will boost post-COVID global economic recovery”, the Foreign Ministry Spokesperson said.

“The US should adopt responsible economic and financial policies and act responsibly for safeguarding international financial stability and promoting world economic recovery. It is the US that the World Bank needs to focus its efforts on in this regard”, he concluded.