Jin Guanping: Make good use of policy space to boost market confidence. In policy, economy, and market
To build a modern socialist country in all respects, we must, first and foremost, pursue high-quality development. The recent Central Political Bureau meeting emphasized the need to make good use of policy space, find the right direction for development, and solidly promote high-quality economic development. This has pointed out the direction for China's macroeconomic regulation in the second half of the year.
Since the beginning of this year, China's economy has shown obvious characteristics of "stability" and the trend of "progress" has continued, especially under the effective implementation of macroeconomic policies, the economic operation has accelerated its return to the normal track, showing strong resilience and potential. In the first half of the year, China's economy achieved a year-on-year growth rate of 5.5%, faster than major developed economies in the world.
However, it should also be noted that the current external environment is complex and severe, the world economy is recovering slowly and weakly, the foundation for domestic economic recovery and development is still unstable, the uncertain and unstable factors of economic growth are increasing, and risks and challenges cannot be underestimated. Especially since the second quarter, some economic indicators have experienced significant fluctuations, which have had a certain negative impact on market expectations. From the perspective of the post epidemic economic operation law, economic recovery is not simply a straight line, but a process of wave like and tortuous progress.
Currently, insufficient total demand remains the main contradiction in economic operation. In this regard, the Central Political Bureau meeting clearly proposed to implement precise and effective macroeconomic regulation, strengthen countercyclical regulation and policy reserves. In recent years, domestic and foreign practices have shown that making full use of countercyclical policy tools can effectively compensate for the market's difficult self repair. In the face of new situations and situations that may arise in the second half of the year, on the one hand, we need to further increase macroeconomic regulation and improve policy coordination, targeting, and effectiveness; On the other hand, we need to make good use of countercyclical adjustment methods, focus on smoothing out economic fluctuations, timely resolving economic risks, consolidating the foundation of economic growth, and solving the problem of insufficient total demand.
In terms of policy reserves, fiscal and monetary policies will still be an important focus for stabilizing growth in the second half of the year. On the basis of continuing to implement active fiscal policies and prudent monetary policies, targeted tax and fee reduction measures should be introduced for weak links in the national economy such as small and micro enterprises, as well as key areas such as technological innovation and green economy. At the same time, we will adhere to the principle of balancing quantity and price, combining long and short, guiding financial institutions to increase their support for the real economy, private enterprises, and other sectors, maintaining reasonable and sufficient liquidity, further stabilizing social expectations, boosting market confidence, and helping to achieve annual economic goals.
The deployment and arrangement of economic work in the second half of the year by the Central Political Bureau meeting is based on a comprehensive evaluation of the uncertainty and risk challenges of economic growth in the second half of the year. At present, a package of policy measures such as stable growth, stable employment, and risk control are being introduced one after another. The future policy reserves are relatively sufficient, and the macro tool reserves are also relatively abundant. As long as we scientifically grasp the balance point of large-scale policies and focus on stabilizing the economic fundamentals, we will definitely promote the sustained recovery and improvement of the economy, and the expected annual economic goals can also be achieved smoothly.
