History tells us that the application and popularization of new technologies result in a cycle of global economic growth and the world economy enters a period of recession or adjustments once the new technologies cease to be the driving force of productivity. After that, a new technological revolution is needed to pull the global economy out of recession and lead it toward recovery and growth.

The extensive use of computer and information technology in the mid-1980s helped the world economy enjoy relatively high growth, with the average rate reaching 3.5 percent in the 1990s and 2000s.[Hong Kong Company Formation|Hong Kong Company Registration] In fact, it recorded 3.9 percent from 2004 to 2007, the highest since the mid-1980s.

But the 2008 global financial crisis interrupted the growth momentum, and for the first time in decades, a negative growth was recorded in 2009. It is still uncertain whether the widely anticipated "third industrial revolution" led by technological breakthroughs in 3D and new energy can pull the global economy out of recession and propel it toward new prosperity. But one thing is certain: Nations that lead the new round of technological revolution will spearhead and even dominate global development in the future.

Aside from new technologies, globalization has also contributed much to global economic growth by deepening the global division of labor and promoting a more reasonable distribution of resources and other factors of production. The global financial crisis, however, has prompted almost every country to resort to trade protectionism to boost their economic development, causing a sharp increase in the number of global trade frictions.

Following the global financial crisis, developed countries have tightened their financial monitoring, which has slowed down the development of their financial sectors and flow of international capital. In response, developing countries have become more cautious about opening up their financial markets to the outside world. These developments, to some extent, will have a negative impact on globalization and push the global economy toward a gloomier future.

[Hong Kong Company Registration Guide]From a short-term perspective, the global financial crisis will continue hampering global economic development. On one hand, the debt crises in some developed countries will have a direct impact on the global financial system and cripple their capability to take new financial and monetary measures to stimulate their economic recovery. On the other hand, a widespread loose monetary policy across the world has flooded the global economy with liquidity, exacerbating inflation worldwide, prompting emerging countries to tighten their fiscal policies and causing economic deceleration.

In the long run, the global financial crisis will not change the trajectory of global growth, although it has had a far-reaching impact on global economy. On average, the global economy is expected to maintain an annual growth rate of 2.9 percent over the next two decades, which is lower than the past two decades.

In developed countries, economic deceleration is likely to become more obvious over the next couple of decades, and the possibility of the United States, Japan, and European countries regaining the growth rate of the previous decades appears to be slim.

Developing countries, however, are expected to become an even greater driving force of global economic development over the next two decades because of their increased inputs into scientific and technological research and development. And most of the developing countries will continue enjoying their demographic dividends, including an endless supply of labor to boost their economic development, for some time to come.

The ever-deepening globalization and the application and popularization of IT will also help developing countries to bridge the technological gap with their developed counterparts. Besides, developing countries' higher savings ratio will offer them a forceful capital booster for development. Developing countries will attract more international capital, which will bolster their long-term growth, because of their improved infrastructure and institutional environment and developed countries' gloomy growth prospect. In fact, developing countries are likely to maintain on average 5 percent growth over the next 10 to 20 years.

Since China's fast-growing economy has slowed down owing to low global economic growth, it should increase its inputs in new technologies' R&D to gain an advantage in the next technological revolution. It should also allocate more funds for the training of talents to improve the quality of its workforce. In particular, the Chinese authorities should take more practical measures to improve the education system in its vast rural areas to offset the negative impacts of the changed demography.[Businesses Registration]

China has long depended on external demand for its economic growth, but the global economic slowdown has made it review its economic development model. At the same time, the rise of other emerging economies has resulted in fiercer global competition for the country. These developments call for the Chinese mainland to expedite the transformation of its development model and reduce its dependence on exports. Moreover, it should also accelerate the implementation of its "go global" strategy and strengthen cooperation with other emerging countries to widen its market.