Xinhua news agency, beijing, june 16th:Economic situationWhat do you thinkPrice stabilityAnd how does relief workNational development and reform commissionResponding to the hot spots of the economy
Wei yuen, wang hae-yang, yang skye
What does china's economic situation look like in the middle of the year, in the face of the multiple pressures of a more complex international environment and a domestic epidemic? How can price stability and relief be achieved? The press spokesman for the national development reform commission, meng yi, responded to the press conference。
Economic performance is steady
“since may, there has been a general decline in the epidemic throughout the country, with the restoration of normal working-life order, a steady economic performance and marginal positive changes in key economic indicators.” meng yi said。
Production supplies have recovered and domestic demand has recovered. Agricultural production is generally stable, wheat in the main production area is expected to yield large harvests, summer grains are expected to yield good harvests, industrial enterprises are returning to production faster and services production is gradually recovering; investment in fixed assets has increased by 6. 2 per cent over the previous five months, consumption has steadily recovered, and foreign trade imports and exports have risen significantly。
Markets are expected to improve, with china's manufacturing procurement manager index (pmi) and its non-manufacturing business activity index (nemi) of 49. 6 per cent and 47. 8 per cent, respectively, in may, rising by 2. 2 percentage points and 5. 9 percentage points, respectively, from the previous month, although they remain below the death line。
“despite some positive changes in the functioning of the economy, there are still many challenges to the recovery of stability on both the supply and demand sides.” meng yi said that he would continue to deploy in accordance with the decisions of the party's central and state councils, to efficiently coordinate disease prevention and control and economic and social development, to work ahead and with appropriate strength through macro-policies, to work to break through blockages that constrain the economic cycle, to effectively safeguard and improve the livelihood of the people and to move the economy back on track。
To push for a solid economic packagePolicy measuresIt'll work soon
The state council recently issued a policy package for a stable economy, covering 33 measures in 6 areas, including fiscal policy and monetary and financial policy. “we have accelerated the implementation of policy measures in accordance with the relevant deployments and requirements, the timely issuance of accompanying implementation rules, and the positive progress and effectiveness of the work.” meng yi said。
For example, it will expedite the issuance of central budget investments, accelerate the implementation of major projects and promote the creation of physical workloads as soon as possible; implement the policy requirements for appropriate increases in the minimum purchase price levels of rice and wheat, and ensure that energy resources, such as coal and crude oil, can be strengthened; direct local efforts to eliminate unreasonable charges in the water and heating sector, and continue to focus on and actively promote efforts to re-establish production in priority areas, material security, etc.; and work with other relevant sectors to promote policies such as fiscal and monetary finance and to create a synergy of growth efforts。
Meng yi said that, as a next step, the national development and reform commission would make every effort to ensure that the relevant policy measures would be effective as soon as possible, that the economy would grow reasonably in the second quarter and that efforts would be made to provide better foundations and conditions for development in the second half of the year。
Stabilizing consumer prices has a solid foundation
Under global inflationary pressures, our prices have remained stable. In may, the national consumer price index (cpi) increased by 2. 1 per cent over the same period; the national industrial producer price index (ppi) fell to 6. 4 per cent over the same period, and the upward and downstream price trends were more harmonized。
In may, the united states and the british cpi increased by 8. 6 per cent and 9 per cent, respectively; the eurozone cpi increased by 8. 1 per cent and many emerging economies increased by more than 10 per cent and a few countries by more than 50 per cent. Our price levels are well below those of major economies, such as the us and europe, and continue to play an important role as a “stabilizer” for global prices。
“looking forward to the end of this year, the production of vital human commodities, such as food and meat and egg fruit and vegetables, will be stable and sufficient, especially as the market for fresh and productive agricultural products during the season increases the market supply, along with the strong guidance of regional logistical blockages, a marked increase in trans-regional transport capacity, a solid basis for stabilizing consumer prices, and the continued operation of the domestic cpi in reasonable areas, which will be able to meet the expected target of about 3 per cent throughout the year.”。
Meng yi stated that although geopolitical conflicts continued to disturb the international energy and food markets, domestic food rations were self-sufficient, coal resources were able to meet demand, and a sustained policy of securing prices was expected to reduce the ppi growth further。
Further promotion of the healthy development of smes
Since the beginning of the year, the difficult challenges faced by small and medium-sized enterprises (smes) in their development have increased significantly, owing to the multiplication of the domestic epidemic and the increased complexity of the international situation。
In order to support small and medium-sized enterprises (smes) in their efforts to overcome their difficulties, the national development and reform commission (ndrc) has issued 18 policy measures on industrial economy and 43 on services relief, with a targeted increase in support for the real economy and msmes. At the same time, close follow-up is being done on the supply and price performance of selected raw materials, strengthening the regulation of supply and demand in markets, promoting smooth running of prices and contributing to lower costs for smes。
Meng yi stated that the next step would be to efficiently integrate disease control and economic and social development and consolidate and expand the effectiveness of policies。
The first is to focus on the problems of congestion, difficulty, carding. Sustained commodity security and price stability, efforts to expand market demand, secure food security, energy security and the supply chain of industrial chains, and increase confidence in sme development。
The second is to strengthen situational analysis. (c) to provide an analysis of sme development and monitor early warning, to respond to emerging issues and to put in place practical policy initiatives in a timely manner and to respond effectively to uncertainties in the external environment。
The third is to strengthen policy tracking. Policy advocacy is directed to increase the number of market owners who are aware of the policy, use it well, ensure that it is effectively channelled to smes, and effectively stabilize the expectations of market owners。
