Interpretation of triple pressure Wang Yiming emphasizes "the resilience of China's economic development"

Beijing, 18 Jan (China News Service) -- The Central Economic Work Conference was held in Beijing not long ago, and the meeting mentioned that China's economic development is facing the triple pressure of contraction in demand, supply shock, and weakening expectations. Wang Yiming, member of the National Committee of the Chinese People's Political Consultative Conference and former deputy director of the Development Research Center of the State Council, interpreted this on the 18th and stressed that it is necessary to face up to difficulties, but also to see the resilience and huge market potential of China's economic development, and the characteristics of China's economy have not changed.

The media meeting of the Economic Committee of the CPPCC National Committee with the theme of "Cohesion and Development -- CPPCC Members Talk About the Economy" was held on the same day. Wang Yiming made the above remarks in response to the media's "how to view the current challenges facing China's economic development" and other related issues.

Observing the latest data released by the National Bureau of Statistics in 2021, Wang Yiming believes that from the perspective of the growth rate, inflation rate, employment and balance of payments of the four indicators of the macro economy, the expected target at the beginning of the year was fully completed last year. For example, the economic growth of 8.1%, the fourth quarter of 1.6% month-on-month, all indicate that the growth rate is gradually stabilizing, in addition to the consumer price index (CPI) inflation rate of 0.9%, also lower than the expectation of 3%; urban new jobs of 12.69 million, exceeding the annual target; balance of payments, foreign exchange reserves for 8 consecutive months at more than 3.2 trillion US dollars, which is also an important factor for the rmb to maintain stability.

"Of course, we are also facing downward pressure now, especially under the impact of the epidemic, the century-old changes have accelerated and evolved, and the external environment has become more complex and severe and uncertain." Wang Yiming said.

Interpreting the triple pressure, Wang Yiming believes that due to the impact of the epidemic, consumer demand has indeed slowed down, especially in December last year, the total retail sales of social consumer goods increased by 1.7% year-on-year, indicating that the pressure still exists. "This is very related to the epidemic, as long as we can effectively prevent and control the epidemic and mitigate the impact of the epidemic, China's huge consumption potential is still there, as long as the epidemic prevention and control is good, consumption can be recovered quickly."

On the supply shock, Wang Yiming talked about the pressure of imported inflation. He pointed out that international commodity prices are still at a high level, with the international energy price index rising to 76.8% in December last year, and non-energy prices rising by 20.02%, which makes domestic raw material prices continue to remain high, and the final pressure is on small and medium-sized enterprises. "With the easing of scissors difference this year, the competitive pressure of downstream enterprises will be alleviated."

In terms of weak expectations, Wang Yiming analyzed that China's manufacturing purchasing managers' index (PMI) in December last year was 50.3%, still at a low economic level, and the PMI of small enterprises has been in the contraction range for 8 consecutive months, which also reflects the market expectations of manufacturing enterprises. In addition, corporate investment expectations have also weakened to a certain extent.

Wang Yiming suggested that in the face of the triple pressure, it is necessary to persist in taking the lead in steady words, seeking progress in stability, and actively introducing policies conducive to economic stability; policy forces should be appropriately advanced, and fiscal policies should be cautious in introducing policies with shrinkage benefits, implementing the strategy of expanding domestic demand, enhancing the resilience of the industrial chain and supply chain, preventing and defusing major risks, improving the expectations of market players, better stabilizing the overall macroeconomic situation, and striving to achieve stable and good development of economic entities. (End)

Source: China News Network