we know the government is targeting the g d p growth. all i'm about, i'm 5.5 percent. now more and more banks expect it to grow by just for it to fight present this year. all right, not to mention issues with the tech sector of course it. so now there's the possibility of us sanctions. that's really on the table now. should china decide to provide material support to russia in its war with ukraine? how big a concern is that for chinese business leaders? actions speak louder, louder than words, the beijing based asian infrastructure investment bank a i b stopped activities that are linked to russia and the blair's, the bricks development bank, which is jointly financed by china, russia, india, brazil, and south africa also announced the suspension of new transactions in russia, before this, 2 of china is the largest state owned banks, had begun to restrict financing for the purchase of russian commodities. all these show that chinese financial institutions do not want to be sanctioned and lose the opportunity to trade in us dollars. so we know how big a concern it is fo

and democracy says that if and from now on year for year, more than 2 percent of our g d. p will be invested in defense for most of the postwar period, germany has essentially been a, a pacifist country. there's been a very strong streak of, of pacifism in german politics that has now apparently all changed virtually overnight. yes, and it's done by a coalition of sort of democrats and green party are, which are one of the most pacifists oriented, or parties in germany. ah, so it might be the end of german passive is, i'm not quite sure about that, because pacifism means that you are unwilling to fight our germany doesn't fight. so we are still the spectators and seeing this war. and i try to influence it with a swift decision and things like that. but are, but we're germans, be willing to fight for that. i have many doubts about terry add to the germany and germans have her. there's been a revolution in how they perceive their own armed forces. this is a very remarkable event. and what does it mean now for germany and europe in the ukraine crisis in the ukraine conflict?

more than 2 percent of our g d. p will be invested in defense for most of the postwar period, germany has essentially been her pacifist country. there's been a very strong streak of, of pacifism, in german politics that has now, apparently all changed virtually overnight. yes, and it's done by a coalition of social democrats and green party are, which are one of the most pacifists oriented thought of parties in germany. ah, so it might be the end of german passive is, i'm not quite sure about that, because pacifism means that you are unwilling to fight are germany doesn't fight. so we are still the spectators and seeing this war, and i try to influence it with a swift decision and things like that. but the but it would germans be willing to fight for that. i have many doubts about terry agirri, germany and germans have, however, there has been a revolution in how they perceive their own armed forces. this is a very remarkable event. and what does it mean now for germany and europe in the ukraine crisis in the ukrain

we know the government is targeting the g d p growth all about i'm 5.5 percent. now more and more banks expect it to grow by just for it to fight present this year. all right, not to mention issues with the tech sector. of course. it so now there's the possibility of us sanctions. that's really on the table now. should china decide to provide material support to russia in its war with ukraine? how big a concern is that for chinese business leaders? actions speak louder, louder than words, the beijing based asian infrastructure investment bank a i b stopped activities that are linked to russia and the blair's, the bricks development bank, which is jointly financed by china, russia, india, brazil, and south africa also announced the suspension of new transactions in russia, before this, 2 of china is the largest state owned banks, had begun to restrict financing for the purchase of russian commodities. all these show that chinese financial institutions do not want to be sanctioned and lose the opportunity to trade in us dollars. so we know how big a concern it is f

some of the government associated economic economists have said it could cost up to 3 percent of g d. p. other economic think tanks say the impact might be less than that. and certainly germany, both in the financial crisis and also as a result of the pandemic, did see serious hits to german industry to g d. p. and nonetheless, saw a come back afterward. nonetheless, he pointed out that we have still not recovered from the pandemic. and the, the additional burdens on the economy due to the ukraine creed at war. and the sanctions should not become greater, for instance, in regard to the sanctions and the burdens on russia itself. so clearly a strong, a drive on his part to limit damage to the economy as all in that parallel what we've heard from the economy, mr. hatchback, who has said, we cannot afford to do an embargo on a short term basis, but we must make ourselves independent of russian energy on a medium to longer term basis. lastly, the affordability question that debt burden, how and when is it going to be paid back? well, they're talking about starting to pay back at the end o

ultimately, it's really what the impact on individual countries g d p is because it's, it's g d p and the ability of people to buy tickets effectively that drives the airline business forward. and one of the concerns is the impact in terms of g d. p growth will actually reduce aviation growth as well. but none of these things are posted. this is the basic point all looking at a little bit. please get them over to say the least. peter, but anyway, thank you really appreciate you outlining all of that for us. peter morris, that a lot of now food shortages, power cuts and long lines for expensive fuel sri lanka is facing its worst economic crisis since independence in 1948 international rating agencies. a warning that it's on the verge of defaulting on its debts, but the government has refused to seek an iron f bailout, and insist that it can handle the crisis on its own. al jazeera michelle fernandez reports from colombo spending hours in queues has become known across she lanka, starting with food, rice, sugar and mid powder. now it's cooking gas and diesel that arissa supply. that the

was spending around 53 percent of its g d p. on its military. there is no clear data on how much france spent between 1940 and 45, though it's estimated to have been 2 in 40 and 60 percent. france spent 2 percent in 2020, and germany is estimated to spend about 50 percent more than 7 decades ago. 2 years ago. it was 1.5 percent the of morris. i'm joined by, i guess in car key. ukraine is maria davis, specialist on e, reclaim re let a license and head of research for the european expert association in london. andrea andrea as creek author and senior lecture at the school of security studies in the defense studies department at kings college. and joining us from brussels, theresa fallon, director at the center for russia, europe, asia studies. theresa is a former member of the advisors group, nato secor. i thanks so much shit for joining us. so, maria, if i could start with you, presumably has, this is welcome news. in key of the germany, the biggest economy in europe is going to ramp up its defense spending. but i want to ask you as well, since y

shots, promising that germany will for the 1st time in many, many years hit the 2 percent target for g d p for spending on the military on annual regular expenditures. that is something that president after president of the united states is try to persuade germany to do and only got germany up to one point for 1.5 percent of g d p or towards the end of angular miracle's period and office. so in one fell swoop and absolutely massive step taken here by the german government and all the science are that the german public would be very interesting. we are going to be looking at some opinion polling tomorrow, here on d w, which will give a really good sense of where the german public is on this. but there are signs that some of the left wing groups groupings, for example, within the social democratic party. that the party of the german shops are so all our shots are not happy with this, and we're seeing see, as this crisis develops, where that those voices grow louder. okay, thank you for that. richard. do normally shoot international editor richard walker . ok, so here's a recap. of the curr

more than 2 percent of our g d. p will be invested in defense for most of the postwar period, germany has essentially been her pacifist country. there's been a very strong streak of, of pacifism, in german policy that has now, apparently all changed virtually overnight. yes, and it's done by a coalition of social democrats and green party are which are one of the most pacifists oriented thought of parties in germany. ah, so it might be the end of german pacifist. i'm not quite sure about that, because pacifism means that you are unwilling to fight are germany doesn't fight. so we are still the spectators and seeing this war, and i try to influence it with a swift decision and things like that. but the but it would germans be willing to fight for that. i have many doubts about terry agirri, the germany and germans have. however, there has been a revolution in how they perceive their own armed forces. this is a very remarkable event. and what does it mean now for germany and europe in the ukraine crisis in the ukraine

i mean the spending above 2 percent of g d, p, as nato has requested of all allies. that's massive. that of course has been something germany was absolutely lambasted for during the trump administration, but also in softer ways by other administrations. this is truly a sea change in germany's role in nato, and i think it's going to be welcomed very much by everyone there at nato headquarters, including the germans themselves. we're no longer going to be under the spotlight for financial reasons for going in for the municipal for do you have to sort of of this dramatic development, the spinning colder atoning of totality. here in germany? well, the world's dialogue was a bunch of german, 4 in politics for many weeks before the russian invasion. it was like repeatedly mentioned. and then when the stock fashioned log dialog dialog with ross, and now with you, what 7 i'm on the grounds and all this. right, missouri announced yesterday in the german for lemons, a long term measures financing and military spending and delivering reference to the ukraine. but when you look on the ground fl

more than 2 percent of our g d. p will be invested in defense for most of the postwar period, germany has essentially been her pacifist country. there's been a very strong streak of, of pacifism, in german politics. the that has now apparently all changed virtually overnight. yes, and it's done by a coalition of social democrats and green party are, which are one of the most pacifists oriented thought of parties in germany. ah, so it might be the end of german passive is, i'm not quite sure about that, because pacifism means that you are unwilling to fight. ah, germany doesn't fight. so we are still the spectators and seeing this war, and i try to influence it with a swift decision and things like that. but, but it would germans be willing to fight for that. i have many doubts about terry agirri, germany and germans have. however, there has been a revolution in how they perceive their own armed forces. this is a very remarkable event. and what does it mean now for germany and europe in the ukraine crisis in the ukra

so some key targets that we were watching out for was the g d p target. as mentioned 5.5 percent or around 5.5 percent, which is the lowest g d p target. china has officially set since 1991. but it is in line with expectations. some other targets we saw was a budget deficit going forward of 2.8 percent and consumer price index of 3 percent . so keeping inflation down is going to be a challenge as it is in many other countries, and an aim to set up an unemployment at 5.5 percent. now in addition to some of these international headwinds, china's economy is also facing a lot of difficulties domestically. we've had this slowing consumption now, largely in june, june to china's very strict 0 corporate tolerance strategy that haven't been able to really pick up spending a retail spending of some years now, which is a concern also struggles in the housing sector due to tightening regulations. small and medium enterprises are struggling to survive and unemployment is also very big one. china has more than 10000000 graduates entering the job market this year. and

i mean the spending above 2 percent of g d, p, as nato has requested of all allies. that's massive. that of course has been something germany was absolutely lambasted for during the trump administration, but also in softer ways by other administrations. this is truly a sea change in germany's role in nato, and i think it's going to be welcomed very much by everyone there at nato headquarters, including the germans themselves, were no longer going to be under the spotlight for financial reasons for him in for the municipal for to have to sort of brothers dramatic development, the spinning colder atoning of totality. here in germany. well, the world's dialogue was the amount of german 4 in politics were many weeks before the russian invasion. it was like repeatedly mentioned in the stock fashioned log dialog dialog with ross. and now we see what's happening on the grounds and all this. right, missouri announced yesterday in a german for lemons. i'll a long term measures financing their military spending and delivering reference to the ukraine. but when you look on the ground for typin

now this is on top of the government's pledge to increase defense spending to at least 2 percent of g d p. and that is in line with the nato budget goals. a special fund of a $100000000000.00 euros has also been earmarked for the military has been at our correspondence. simon young. he's following the story force zeus. i'm in the news of the purchase of these f 35 fighter jets. is this germany putting its money where its mouth is when it comes to buffing up its military muscle? absolutely branch. i mean, so far, of course we've had this announcement. as you mentioned, all the spending 100000000000 euros and raising the military spending to 2 percent of g d. p is it's been a long standing nato target. and also a much clearer commitment, i think, from germany to stand ready to defend nato militarily and to take an active role by contrast, with the slightly more reluctant role that has had in the past. we've heard the announcements, but what we're going to spend the money on. well now we're beginning to see some of that. with this announcement, they're going to be or ordering f $35.00 stea

are countries other countries as well such as niger area and thailand who reportedly all have higher g d p than current g. 20 members. so is a time the g 20 opens up it's membership or reforms and starts to include other countries. what's your take on this? i certainly think those things should be under consideration and discussion at the time. in addition to the idea of, you know, shouldn't be based strictly on economic science or should there be other factors in such as, are you a good player in this integrated economic international system that we have? but yes, i mean, russia particularly after this sanction is no longer really at that at that level. so i believe that we should be careful about just rapidly expanding science and reactions the situation because you have the, i mean, it's an economic body that does have an important diplomatic role and negotiating these issues. but they should certainly consider the fact which, which other countries might play a more positive and affirmative role in the body. and if there are countries that are creating the types of economic issues out

g d p by a slightly under 10 basis points. well as a result of the sanctions, what parts of the economy do you think are going to see deeper the most deeper cooperation between russia and china now? well, china has a few deals with russia in the last 30 days to deal with it's it's liam of the gas and oil is almost equivalent to that was supposed to be sent to the west. so that's one thing. and, and perhaps an expected consequence of all this session is that the simple, simple logic will tell us that the russian will be trading with china more using your maybe more. and in fact, we have a question 7 bang spin kit, all this week. system. russia is relying more on the china so, so to my system course, the i p s, and also do the counterpart in russia, and that would, in the long run could severely challenge the status of the us dollars. what do you think about the potential of russia and china creating a wider economic block, perhaps even resembling the you, with like customs, free trade and so on. china is certainly moving toward

so set a g d p target a 5 and a half percent. that's the lowest in 3 decades. katrina, you reports from beijing, about 3000 of china's more powerful officials have gathered in baking to begin it's week long national people's congress. the chinese premier outlined the direction for the your head, the top priority stabilizing economic was down though we must make economic stability, our top priority, pursue progress, well, insure him stability in the face of new downward pressure. the task of ensuring stable growth needs to occupied and even more prominent position with a g d. p. target. around 5.5 percent was set. the lowest figures since $991.00. but a number in line with 4 costs. the premier says, china's economy faces risks at home and abroad, the war and ukraine, climate change, and the ongoing current of ours pandemic, our major concerns. there's obviously a tremendous amount of activity in the world that is going to affect china. we're on the verge, literally of a one of the largest economic downturns that we've ever seen. u

is on top of the government's earlier pledge to increase defense spending to at least 2 percent of g d, p, and live with nato requirements. this year, german armed forces will receive a one time special fund of a $100000000000.00 euros. get more on this roma, d, w political correspondence. simon young. welcome, simon. it's just 2 weeks said such as for sheltering arms, a 100000000000 euro boost to the countries that defense spending is today's announcement. the 1st solid evidence of this major shift in german defense policy. yet no question, phil. as you say, this has been this huge a sea change in germany's approach with the massive increases in spending announced . and in particular importantly, coming up to this 2 percent of g p, a longstanding nato target at, but also a change in the sort of posture in the, a clear ness of the commitment to potentially defending nato. if it comes to that, or you know, having a more active, military readiness to do that. and so this decision to buy f, 35 combat aircraft from lockheed martin in the us is really the 1st big, big decision, big project

favor of the recent move by the german government to increase annual military spending to 2 percent of g d p, with an additional one off injection of a 100000000000 euros. our neighboring countries are counting on germany and with this announcement and with the will now to, to rebuild forces, re enforce them again, that is a strong statement. and of course, from a military perspective. and as a nato commander, i'm counting on germany that they brew rebuild capabilities they gave away many years ago. the exercises here at camp runner a rule, so aimed at reassuring people living in norway, in the nearby town of hummer. people told us they're fully aware of the drills a norway has a border we do with russia and we never know what can happen. so i think it's also a lot of fear in norway. what can happen? we don't know. nato will protect us. and i think ukraine would then have it better if they, very natal know, i'm afraid of that. and because i think we have to work and, and people to people in peace process and, and the military, many of the soldiers present here will now participate in a 355

their savings and apartments and houses and that's responsible for around a 3rd of china's current g, d p. which is why economists say if the sector falters, it could some china into a recession. earlier i asked our type a correspondence sometimes to whatever ken's debt problems mean for china's economy, shall i regret, as the most indebted ruin their development in china, with debt equivalent to more than $300000000000.00. as of june 2021. the fact is that hidden debt is upon in the chinese rule as that industry off balance sheet debts that were not previously disclosed to investors or credit rating companies, such as guarantees for wealth management products or a private laws have caught investors off guard. it shows that mil in china's rule, asked a sector expanded to the limit as the to the next 2 major crisis, our debt and bubble cleaning. so we could see this crisis spreading to other top real estate companies and leaving their huge debt to this to the state. can the chinese government stop the crisis? why 1st i still argue in it. the chinese government, well save evergreen. if yo

one 5th of the national g d p is money sent home by family members abroad, but according to officials, 70 percent of the population don't even have a bank account. considering the high transaction costs that come with conventional currencies, bitcoin is also a fast and inexpensive alternative. another reason is that a salvador hasn't had its own currency since 2001. they use us dollars, but the country is eager to reduce their dependence on the united state prison. how does paying with crypto currency is work in everyday life? we took a closer look now on campus runs a small printing business in san salvador, the capital of el salvador. he pays with bitcoin every day and that boiled complaint, hey, with fleet coin wherever i can are at small shops in the supermarket. the and at gas stations, macau, this, selena staying for gas when bitcoin has become 2nd nature. when he gets to the cashier, instead of reaching for his wallet, he simply scans a q r code and transfers the amount by app. but it wasn't always this easy. there were lots of initial problems with the government's digital wal

israel and singapore, for example, their defense spending accounts for more than 5 percent of their g d p. so you tie one should raise it to at least 3 percent. if we invest more in our military, they chose our determination to defend ourselves in turn, our allies will be more willing to help us only de luca e at quicken goal. this week, u. s. president joe biden sent a delegation of full must security of shows to taiwan as a show of support to the island. beijing reacted furiously with state media, calling it an obvious provocation. on the taiwan side, analysts sat. morale has been booster, significantly adding that the taiwanese must be on alert, but not panic amid the rising tension on go to the china is setting a trap. they try to make taiwanese people tense all the time, so we get tard and numbed them. they can seize opportunities to launch surprise attacks. so key when i take keep calm and carry on. tony's people have been doing this for 70 years and they're not going to change this mentality for the time being . many russians who live in other countries have spoken out against th

these g d p won't grow by 4 percent. this year's previously predicted, according to the european commission. but while russia's invasion of ukraine may weigh on the flux economy, the resulting higher energy and raw material prices aren't expected to completely de rail. it's recovery from the content. ela must says is companies tesla and space x are facing significant pressure from inflation. rushes war in ukraine has pushed commodity prices to the highest levels in 5 years. tesla has reactive by raising prices for several car models by $1000.00. the meta says it's suspending certification of russian planes licensed in the british overseas territory is due to sanctions on moscow. the prohibits necessary maintenance work on the plains. the measure is likely impacting hundreds of russian commercial aircraft, more than $700.00 of which are licensed in bermuda. more than a 1000 airport security workers in germany went on strike on monday, leading to the cancellation of hundreds of flights they're calling for better pay and wo

our g d. p was down 8 percent. we witnessed high inflation, high budget expenditures, but in just 2 or 3 years, the situation was completely different. there is no need to despair. the decline could be 8 percent or 4 percent or more than a percent. there will be a drop. that's the only thing we know for sure. but what's key is to ensure the best possible exit from the downward facing. as we had that, we have to learn how to kickstart processes, which will pull the economy through this trial and into a growth phase motion. so that while agree that it will be like 2009 or something about the world. no, i do not know for sure. i don't want to pass any judgment. it all depends on how fast we take action. instead of 9, we did not enjoy some technology of great speed of information exchange things at different now than they were in the 2000. and 9 is true. there weren't that many restrictions, all that much pressure from the sanctions, but the markets were virtually shut down because the whole world was struggling with v

their dropping g d pay, massive drop of living standards. russians are going to feel a lot poorer because of this. i indeed, as a ratings agency pitch cut rushes credit rating to junk just earlier on this week. it is defaulting on. is that something that is almost certainly going to happen now? seems very likely unless pollutant poles pulls out to view craner. i think what's interesting about this christ rusher is you know, it reminds me of 98, the big financial crashing machine, 98. but actually, it's worse, it's worse because the russians didn't expect this was going to happen. they believe the lies of the kremlin, they're all invested. so they're all massively losing their money in rushes, financial markets from banks a, it's also default and restructuring was part of the solution. and they also had the systems from the west and i'm a program. so it was kind of like at the end of the tunnel for russia, and for those companies, those international companies that you're thinking about, where is the light? when is this going to rent? when is there going to be an improvement in the relatio

the economic impact for the country could be immense. analysts say that china's goal of a 5.5 percent g d, p growth is unrealistic. and you're up to date with d. w. business. i'm daniel winter in berlin for me and the business team, thanks very much for watching to the point. strong opinions, clear positions, international perspectives. russian forces are intensifying their attack on you with each side accusing the other of shocking crimes. the world, meanwhile, looks on. it's a war weapons, a war of words find helpful on to the point shortly. to the point on d w. putin's war ukraine is also shaking up the world economy . the heavy sanctions are not only putting russia under pressure. europe wants to free itself from its energy dependency. china fees to see the market. and in the forest countries, new families are in a business, especially in 60 minutes on d w. oh, i think everything jenny fair, some are big a muslim. so much different culture between here and there. so jelly, do you quote empathy? ah, and to some of this, i think it was worth it for me to come to germany. shove my got my

favor of the recent move by the german government to increase annual military spending to 2 percent of g d. p, with an additional one off injection of a 100000000000 euros. our neighboring countries are counting on germany and with this announcement and with the will now to, to rebuild forces, re enforce them again, that is a strong statement. and of course, from a military perspective. and as a nato commander, i'm counting on germany that they brew rebuild capabilities. they gave away many years ago, the exercises here at camp renner, a. russo aimed at reassuring people living in norway, in the nearby town of hammer. people told us beth, fully aware of the drills and norway has border. we do with russia and we never know what can happen. so i think it's also a lot of fear in norway. what can happen? we don't know. nato will protect us. and i think ukraine would her have it so if they were in natal, no, i'm afraid of that. and because i think we have to work and people to people in peace process and the military, many of the soldiers present here will know, participate in a 355 and cruise