(Essential questions) Short comment: Why is China's economy "stable in the head"?
China News Service, Beijing, December 20th, title: Why is China's economy "stable in the head"?
China News Agency reporter Wang Enbo
As 2021 is drawing to a close, although the world economy continues to rebound, the frequent attacks of "headwinds" such as mutated viruses and rising inflation have made the prospects for global recovery hardly optimistic.
In this context, the Central Economic Work Conference, which will set the tone for China's macro policy in the coming year, requires that next year's economic work should be steady and progress while maintaining stability.
This is not only a response to the current situation, it also conveys China's consistent development logic.
Comic "Stable Characters Take the Head".
China News Agency issued Yin Zhengyi drawing
Since the beginning of this year, China's economic growth has led the world. The GDP growth rate of 9.8% in the first three quarters was significantly higher than that of the United States, Japan, Germany and other major economies in the world.
However, it is an indisputable fact that difficulties and challenges have increased.
From a domestic perspective, the triple pressures of shrinking demand, supply shocks, and weakening expectations have caused problems such as coal shortages, power shortages, core shortages, cabinet shortages, and labor shortages. From an international perspective, global epidemic prevention and control have experienced ups and downs, and the supply chain of the industry chain is cyclical. Difficulties, rising commodity prices, and the external environment has become more complicated and severe.
Under the resonance of internal and external factors, China's overall economic growth rate this year has been high and low.
In order to prevent downward pressure from forming inertia, next year's economic work will be based on the word "stable", focus on stabilizing the macroeconomic market, and keeping the economy operating within a reasonable range, reflecting the rationality and pragmatism of China's decision-makers.
As the world's second largest economy, the second largest consumer market, and the largest trader in goods, China has the confidence to be "stable" on the basis of facing up to the difficulties.
Since the epidemic, China's economy has continued to recover steadily, making an important contribution to the stabilization and recovery of the world economy.
China gives full play to its advantages as a major manufacturing country, strongly supports relevant countries in fighting the epidemic, and helps stabilize the global industrial chain supply chain. Currently, it has provided more than 1.8 billion doses of the new crown vaccine to the international community.
In the first half of this year, China's imports of goods accounted for 12% of the world's total, a record high over the same period in history.
In February 2021, the first batch of Coxing New Crown vaccine aided by China to the Philippines arrived at Manila's Vilamour Military Airport.
China News Agency issued a photo courtesy of the Chinese Embassy in the Philippines
The reason why China's economy bucked the trend and took a different path and became the stabilizer and source of power for the recovery of the world economy also benefited from the logic of "stability".
In particular, the scientific and stable macroeconomic policy has allowed China to "have a card in hand and not panic in its heart."
In the face of the global economic "sudden stop" and liquidity crisis caused by the epidemic, major western developed economies represented by the United States have implemented ultra-loose monetary policies, and the stimulus has been repeatedly increased due to the epidemic.
In sharp contrast, China adheres to a normal monetary policy, maintains policy continuity, stability, and sustainability, and does not engage in flooding.
At the moment, inflation continues to hover at a high level, making the signal of the monetary policy turn of developed economies gradually clear, bringing hidden risks to financial markets and other economies.
However, China's inflationary pressures are controllable as a whole, and macroeconomic policies are in a relatively favorable position where they can advance or retreat.
A notable example is that the Federal Reserve recently announced that it will accelerate the reduction of bond purchases in response to high inflation, and the Bank of England has also announced an interest rate hike; China's central bank has officially reduced its guidelines and released about 1.2 trillion yuan in long-term funds to support the real economy.
On December 15, 2021, the People's Bank of China reduced the deposit reserve ratio of financial institutions by 0.5 percentage points (excluding financial institutions that have implemented a reserve ratio of 5.0%).
The central bank announced that it will continue to implement a prudent monetary policy and adhere to the prudent word.
Photo by China News Agency reporter Jiang Qiming
A complete industrial system, abundant human resources, convenient infrastructure, a strong domestic market, surging market vitality, and sufficient policy space.
A series of factors converged to further consolidate the "stability" situation of China's economy.
The International Monetary Fund predicts that in 2021, China's total economy will account for about 18% of the world economy, and it will increase steadily year after year.
The year 2022 is about to start. When the background of "stability" becomes stronger, the Chinese economy is expected to face the "headwind" with greater resilience and vitality.
(Finish)