[Is the shadow of explosive deflation with rhetorical questions real?]
【Current macro performance is normal】
After observing and analyzing China's economy in 2023, from the macro performance, there was no deflation in the first quarter of China's economy.
Consumer prices rose moderately, and money supply and economic growth maintained a relatively fast growth rate.
[Local boom leads to deflation controversy]
However, some argue that China's economic growth is only a partial boom, and that the law of 28 leads to the monopoly of resources by a few people, resulting in a deflationary state for most people.
According to this view, the benefits of economic growth are not universally applicable to every level, leading to a widening gap between rich and poor.
【Historical experience and deflation risk】
Historically, China experienced deflation in 2008-2009.
At that time, many indicators such as prices, GDP, and exports collapsed, which had a serious impact on economic development.
Therefore, the current focus is to avoid falling into deflation, future economic development is also unpredictable, and measures need to be taken to prevent possible austerity.
[Stimulating demand is a priority]
At present, stimulating demand and consumption has become a top priority for the Chinese economy.
To boost consumption and investment, looser monetary policy and lower interest rates may be needed.
Such policies would help boost market confidence, stimulate consumer purchasing power, and boost economic growth.
【CPI is low, but the economic recovery trend is good】
Although the CPI is at a low level, China's economy is expected to continue its recovery in 2023 as the trend of economic recovery improves.
The government's 5% GDP growth target is also on track to be met, with the potential for a strong recovery across the board.
This will bring new hope for China's economic development.
[Concluding paragraph: In the face of the unknown, you need to continue to pay attention]
In general, the current macro performance is normal on the question of whether China's economy will deflage in 2023, but some people believe that the shadow of deflation exists.
To avoid a deflationary plunge, stimulating demand and consumption has become a priority, and may need to be supported by looser monetary policy and lower interest rates.
In any case, we should continue to monitor economic developments to cope with unknown risks and challenges.