The United Nations 2030 Agenda for Sustainable Development covers 17 goals, the 17th of which is “Partnerships for the goals,” namely: Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development.

Under this major goal, there are 19 targets, the 17.13 of which is “Enhance global macroeconomic stability, including through policy coordination and policy coherence.”

●Current Situation

The World

The world economy is stagnant

Growth and Inflation. Graph: IMF

As stimulus measures to respond to the COVID-19 pandemic were phased out, the primary concern of macroeconomic policy globally became restoring inflation to central bank target ranges. Global output subsequently decelerated from 3.1 percent in 2022 to 2.7 percent in 2023. UNCTAD expects the world economy to maintain the same subdued growth rate of 2.7 percent in 2024 and 2025, marking three years of stable but stagnating growth amid gradual global disinflation.

In recent years, the economic challenges faced by the world include sluggish post-epidemic recovery, energy crisis and geopolitical tensions, which have exacerbated economic fluctuations. The economies of many developing countries are significantly affected by external factors such as capital flows and commodity price fluctuations, especially in the context of rapidly rising interest rates. This instability has undermined investment confidence and led to debt stress in many low-income countries. Specifically, capital outflow, inflationary pressure and exchange rate depreciation have become major challenges for developing economies.

Source: United Nations Conference on Trade and Development

China

China stabilizes macroeconomic situation through policy and international cooperation

Photo: China Daily

As the world’s second largest economy, China has maintained domestic macroeconomic stability in recent years through flexible monetary policy adjustments and fiscal stimulus measures. In 2023, the Chinese government stabilized domestic economic growth by further reducing the required reserve ratio and strengthening financial support for small and medium-sized enterprises. In addition, China has strengthened macroeconomic policy coordination with countries of the Belt and Road Initiative to reduce external risks.

As pioneers of China’s innovative economy, many companies in Shenzhen have played an important role in promoting regional economic stability. For example, Huawei and Tencent have not only improved their ability to resist risks through technological innovation and global market layout, but also provided support for the stability of the domestic economy.

Source: www.gov.cn

●Cases

The World

EU’s Recovery and Resilience Plans stabilize European economy

Photo: European Union

The European Union launched 750-billion-euro Recovery and Resilience Plans (RRP) after the pandemic, aiming to promote long-term stability through green and digital transformation. The plan has played a key role in the financial situation and economic growth of member countries, especially in countries that have been severely affected by the pandemic, such as Italy and Spain. The Recovery and Resilience Facility (RRF) and its REPowerEU component are also playing a key role in helping EU companies reap the benefits of the green and digital transition. 

By August 31, 2024, more than 2,800,000 companies, mostly small and medium-sized enterprises (SMEs), had benefitted from RRF support. In addition to direct financial support, the RRPs have also contributed to the implementation of significant reforms to improve the business environment across member states, for example in the areas of digitalization of businesses, facilitating permitting procedures, and up- and reskilling of the labor force.

Source: European Union

Free trade flow in the African Continental Free Trade Area

Photo: World Bank

Since its launch in 2021, the African Continental Free Trade Area (AfCFTA) has provided a more stable macroeconomic environment for African countries by reducing trade barriers and promoting regional economic integration.

In 2022, the African Continental Free Trade Area (AfCFTA) Secretariat launched the Guided Trade Initiative (GTI) to initiate commercially meaningful trade under the AfCFTA. It applies to products for which there are agreed rules of origin, and AfCFTA state parties that have finalized and published their tariff schedules according to the requirements of the AfCFTA as well as enabled their customs systems to receive goods under the agreement. Major African markets such as South Africa and Nigeria joined in the first half of 2024. By the end of October 2024, 37 different state parties to the AfCFTA (among the 54 total) will have completed these procedures. This significant threshold of countries and coverage of major African markets creates the conditions for accelerated trading to begin. Growers, manufacturers and processors (including U.S. ones operating on the continent) that meet the product-specific rules of origin under the AfCFTA can benefit from reduced tariffs in intra-African trade.

Source: African Export-Import Bank, International Trade Administration of Department of Commerce of the United States of America

China

Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone introduces scientific research institutions

Photo: Shenzhen Park of Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone

Shenzhen ASTRI, a wholly-owned subsidiary of the Hong Kong Applied Science and Technology Research Institute, was inaugurated in the Shenzhen Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone, the Hetao project of the Asian Institute of Anti-Aging and Translational Medicine was launched, the national intellectual property operation (Shenzhen Hetao) international transformation pilot platform was approved, and a number of scientific and technological innovation institutions also landed in Hetao, such as the China Resources Life and Health Research Institute, the international headquarter of the Guangdong-Hong Kong-Macao Greater Bay Area National Technology Innovation Center, and the joint laboratory led by the Guangdong-Hong Kong-Macao Greater Bay Area Digital Economy Research Institute.

Five universities, including the Hong Kong University of Science and Technology and the University of Hong Kong, have successively set up more than 10 innovation R&D platforms and a series of innovation incubation carriers in the Hetao Shenzhen Park. At the same time, the  Hong Kong Science Park Shenzhen Branch has also settled in the Hetao Shenzhen Park. It is operated by the Hong Kong side and is subject to international management rules, and has now accepted more than 50 Hong Kong science and technology innovation institutions. The Shenzhen Data Exchange, located in the Hetao Shenzhen Park, has completed a total of more than 15 billion yuan of data transactions and more than 250 million yuan of cross-border data transactions, both ranking first in the country.

Source: Liaison Office of the Central People’s Government in the Hong Kong S.A.R., WeChat official account of Shenzhen Park of Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone

Shenzhen Stock Exchange promotes international capital market cooperation

The ETF interconnection products of the Shenzhen Stock Exchange and Singapore Exchange Group are listed in Shenzhen and Singapore. Photo: The Paper

The Shenzhen Stock Exchange is committed to promoting international capital market cooperation under the framework of the Belt and Road Initiative and providing support for global macroeconomic policy coordination and stability. In recent years, the Shenzhen Stock Exchange has strengthened the interconnection of financial infrastructure by deepening cooperation with exchanges in countries of the Belt and Road Initiative, and actively promoted the reciprocal integration of the markets.

The Shenzhen Stock Exchange assists enterprises in countries of the Belt and Road Initiative in issuing bonds and green financial instruments to support their infrastructure construction and sustainable development projects. It is promoting green finance cooperation with Singapore and other countries, as well as the implementation of green technologies and projects in Shenzhen.

Source: Shenzhen Stock Exchange

●Background

Sustainable Development Goals (SDGs) initiated by the United Nations

On January 1, 2016, the 17 Sustainable Development Goals (SDGs), including 169 targets, of the 2030 Agenda for Sustainable Development — adopted by world leaders in September 2015 at an historic UN Summit — officially came into force. Countries will mobilize efforts to end all forms of poverty, fight inequalities and tackle climate change while ensuring that no one is left behind.