Experts Emphasize The Adoption Of New Measures To Boost GDP
Experts said on Tuesday that it is necessary to adopt more policy measures to expand domestic demand to consolidate China’s accelerated economic recovery in December. As there are signs that the export and employment situation may deteriorate.
Zhang Bin, a senior researcher at the Institute of World Economics and Politics of the Chinese Academy of Social Sciences. Said that it is necessary for China to introduce a package of policies to effectively. Stimulate domestic demand and respond to the downward pressure on the economy brought about by the real estate downturn. Sector and export growth may slow down.
Zhang said that although China’s export growth is expected to maintain a certain degree of flexibility,
it may slow down this year because of the gradual reduction of stimulus plans in major economies and weak overseas demand. Which highlights the need to strengthen China’s domestic demand.
It is wise for the Central Bank of China to lower the policy interest rate as soon as possible to boost market investment and consumer demand. He said, adding that fiscal policy should be more active in stimulating infrastructure investment.
Zhang added that these measures will be the key to helping the Chinese economy achieve a reasonable economic growth of about 5.5% this year. Which is a necessary level to maintain a stable employment situation.
Prior to the above comments, economic indicators in December showed that as manufacturing activities accelerated, China’s economy may have gained a firm foothold. But the contraction in export orders and the number of employees in the industry adds a warning.
Specifically, the Caixin China Manufacturing Purchasing Managers Index is a non-public survey of manufacturing activity indicators. It rose from 49.9 in November to a semi-annual high of 50.9 in December, indicating that the industry is in the midst of rising production and sales levels. Regain momentum for growth.
A PMI reading above 50 indicates expansion, while a reading below 1 indicates contraction.
However, experts a survey released by Caixin Media Group on Tuesday showed that the labor force. In the industry fell for the fifth consecutive month in December the fastest rate since February 2021. Company respondents said they were not particularly keen to fill vacancies. Due to employee resignation or retirement.
The survey shows that due to the deterioration of the overseas COVID-19 situation. Rising transportation costs and shortage of containers, the sub-specifications of new export orders have also remained within the contraction range for the fifth consecutive month.
Official data provides similar hints. The National Bureau of Statistics said on Friday that due to reduced pressure on raw material costs and improved market demand. The manufacturing official purchasing managers’ index rose to 50.3 in December from 50.1 a month ago.
However, the bureau said that the industry’s new export orders and employment numbers continued to shrink last month.
Wang Zhe, senior economist at Caixin Insight Group, said: “In general, as supply and demand improved and inflationary pressures eased, manufacturing conditions improved in December.”
“But the job market is still under pressure, and companies are not so optimistic. Indicating that the economic recovery is unstable. COVID-19 and overseas demand are still unstable factors,” Wang said.
Therefore, it is expected that policymakers will focus on stabilizing the economy this year. Adding that the policy focus should be on promoting employment and increasing targeted support for small and medium-sized enterprises.