- This is the script of CNBC's news report for China's CCTV on December 15, Tuesday.
Welcome to CNBC Business Daily, I'm Qian Chen.
7 years after the 2008 global financial crisis, and the FED is set to raise rates during this week's meeting...
Are we back to where we were before the crisis?
The global economy risks protracted "sub-par growth," the International Monetary Fund (IMF) warned not long ago, as economists continue slicing their forecasts.
Real gross domestic product (GDP) growth is seen averaging 3.1 percent year-on-year across the globe in 2015 and 3.6 percent next year by the IMF.
This is down from the international body's July forecasts, which suggested economic expansion of 3.3 percent in 2015 and 3.8 percent in 2016. It is also marginally slower than the growth rates of 3.3 percent and 3.4 percent seen in 2013 and 2014, respectively.
In 2008, when the Fed pulled out all of its monetary stops following the
2008 collapse, the move was designed to stabilize the global financial system get the U.S. economy back to a more "normal" footing.
Then, cashflows were rushing into the emerging market.
After seen years of its extraordinary effort to suppress short-term interest rates to abnormally low levels, Fed policymakers now believe most economic data show that it's time to get back to a more "normal" level of interest rates.
And now, time for those cash to go home... leading cash outflows from EM and rapid currency depreciation.
The retrenchment reflected growing tensions in some of the world's once-highflying emerging economies, which are struggling with slower growth, substantial debt and plunging prices for commodities, which many of these economies rely on.
Two major economies here in EM...
There's been much touted about the prospects of these economies coming into this decade.
China has sought to rebalance its economy, and it's also faced what many have called a necessary slowdown in its breakneck speed of growth. China saw its slowest pace since the global financial crisis..
But at 6.9%, that's sill better than Russia's economy - which continued to contract in the third quarter, keeping it in recession.
The Russian economy getting battered by Western sanctions imposed in 2014 after Russia annexxed Crimea. The sharp plunge in oil prices not helpiing the energy-dependent economy either.
The weakened rouble pushing up inflation which stands at 15% compared to China - whose inflation rate has come down from its heady days and beijing now trying to fight off deflationary pressures instead.
And while China has been easing monetary policy to support growth, Russia has kept interest rates in the double digits to fight off rising prices and support its currency. In its latest meeting, it held rates at 11% as it saw inflation easing somewhat.
.......A more interesting comparison is between India, which is called "the New China" and Japan, which has been struggling to get its economy out of recession.
Japan's monetary policies...
At the same time, the ECB is to continue its QE program...
CNBC's Qian Chen, reporting from Singapore.