China’s #economicrecovery now is akin to a postoperative recovery—the condition is continuously improving but still far from normal and is at risk of deterioration with a weak foundation.For the economy to return to pre-pandemic level,a loose policy environment is essential:1/5
As fiscal policy decisions are generally fixed after the two sessions, the key to maintain a favorable policy environment will lie on monetary policy and reform measures. new.cf40.org.cn/uploads/202007… 2/5
These measures include 1. maintaining a low and stable interbank market interest rate so as to drive down financing costs in an indirect way. … 3/5
… With low inflation and unstable basis for economic recovery at present, monetary policies will have to remain in ease for a rather long period of time. 4/5
And 2.exploring new growth drivers by establishing pilot reform zones. Besides the Hainan free #trade zone, China could consider launching similar plans in different cities with different positioning and missions, each targeting a specific field of reform in the early stage. 5/5
Share this Scrolly Tale with your friends.
A Scrolly Tale is a new way to read Twitter threads with a more visually immersive experience.
Discover more beautiful Scrolly Tales like this.