Cai Fang: Resident consumption is the driving force for long-term sustainable economic growth, and domestic consumption demand should be expanded

Cover news reporter Meng Mei Yi Yili

On October 24, Cai Fang, former vice president of the Chinese Academy of Social Sciences and member of the Monetary Policy Committee of the Central Bank, said at the "2021 Global Wealth Management Forum" that the long-term sustainable economic growth momentum still comes from the consumption of residents, so in the "six guarantees", to fully protect the market entities that can really restore employment and improve people's livelihood, policies should also be introduced for people with insufficient employment, people with lower incomes, people who have just been lifted out of poverty in rural areas and the elderly population.

On the current macroeconomic situation, Cai Fang believes that China's epidemic occurred earlier, responded adequately, and took the lead in recovering the economy from the epidemic. However, at the end of the day, the COVID-19 pandemic is still raging around the world. In this process, China's economic recovery has formed a situation in which the supply side precedes the demand side recovery, and a pattern of demand side before the supply side has emerged abroad. Therefore, the recovery characteristics of China and foreign countries have formed a chimeric approach to each other, and China's exports have supported the economic recovery for a long time. However, the epidemic situation abroad is constantly under control, and the supply bottleneck will eventually be broken, and it can be seen that China's export side is not as strong as before.

In Cai Fang's view, in the long run, the more sustainable supply and demand pull factors still rely on domestic demand, from a policy point of view, China should not only take advantage of the current favorable environment, give full play to its own capabilities, but also should pay more attention to and expand domestic consumer demand, in the "six guarantees" factor to take into account the balance between the main body of the market, the basic people's livelihood, and employment. Therefore, in the "six guarantees", we must fully protect the market entities that can really restore employment and improve people's livelihood, and we should also introduce policies for people with insufficient employment, people with lower incomes, people who have just been lifted out of poverty in rural areas, and the elderly population.

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