Currently, economic recovery depends on two factors: 1. duration of the pandemic; 2. damage to the production capacity: new.cf40.org.cn/uploads/202005… #NovelCoronavirus #COVID19 #economics
Recovery means reconnecting interrupted supplies and demands. Restoring demands, instead of expanding demands as some suggest, is the top priority at the moment.
One reality of economic growth amid the pandemic: the economy is shifting from conventional growth model to the "anti-epidemic growth model", meaning it’ll be always necessary to devote some resources to tackling the virus, making it impossible to achieve potential growth rates.
Three issues in short-term policies deserve attention:
1. top priority in maintaining steady growth is to stabilize consumption
2. send direct subsidies to low-income population
3. save enough capital for foreign trade enterprises facing the second wave of shock
Substantially deepening reform is the best stimulus policy - promote the development of metropolitan areas through factor market reforms, and turn it into a new “driving force” for China’s economic growth.
In the next five to ten years, the accelerated development of metropolitan areas and city clusters will become the greatest structural potential for the economic growth in China. In other words, it is a new driver of China’s economic growth.
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