Anchoring a good start to the New Year, local measures to stabilize growth are poised to take off

2022-07-05 0 By

Following the unveiling of the 2021 China Economic Annual report, local governments have successively submitted their economic “report cards” for the whole year.Economic Information Daily has learned that in the first year of the 14th Five-year Plan, the economy in many places has recovered steadily and improved steadily, showing strong momentum, steady momentum and strong resilience.At the same time, in the face of the triple pressure, local governments have stepped up plans for a new round of concrete measures to ensure steady economic growth in 2022.A package of concrete measures will be implemented to stabilize industrial growth, unleash consumption potential, expand effective investment, and invigorate market entities by reducing the burden of bailouts.According to data released by local statistics bureaus and local NPC and CPPCC sessions, so far, Jiangsu, Shandong, Hainan, Anhui, Inner Mongolia, Fujian, Hubei, Shanghai, Beijing, Chongqing, Guangdong, Sichuan and Shaanxi have released their economic report cards for 2021. Steady economic recovery and steady improvement have become common features.In the first year of the 14th Five-year Plan, the economic aggregate of many provinces has reached a new level.So far, 12 provinces and cities have seen their GDP surpass the 3 trillion yuan mark, including Guangdong, Shanghai, Beijing, Zhejiang, Jiangsu, Fujian, Shandong, Hunan, Anhui, Hubei, Sichuan and Henan.Guangdong’s GDP exceeded 12 trillion yuan for the first time, ranking first in China for 33 consecutive years.In addition, Jiangsu, Shandong and Zhejiang exceeded 11 trillion yuan, 8 trillion yuan and 7 trillion yuan respectively, while Hubei, Sichuan and Henan all exceeded 5 trillion yuan.In terms of economic growth, GDP growth in 11 provinces and cities, including Beijing, Zhejiang, Jiangsu, Shandong, Chongqing, Anhui, Hubei, Jiangxi, Hainan, Sichuan and Shanxi, exceeded the national growth rate of 8.1 percent in 2021.Among them, Hubei’s GDP grew by 12.9%, 4.8 percentage points faster than the whole country, achieving a strong recovery.”Overall, the local economy has maintained a steady recovery, and the pace of high-quality economic development has accelerated.In 2021, all localities achieved the economic growth targets set at the beginning of the year.While economic aggregate has grown, local governments have continued to develop and strengthen new drivers of growth.”Everbright securities managing director, chief macroeconomist Gao Ruidong to “economic Information Daily” reporter said.”Steady progress” and “steady improvement of quality” have also become key words for local governments to interpret economic data.For example, Fujian’s import and export volume was outstanding. The total volume of import and export of customs goods reached 1,844.958 billion yuan, up 30.9 percent over the previous year, 9.5 percentage points higher than that of the whole country.The output value of strategic emerging industries increased by 28.8%, 13.4 percentage points higher than that of industries above designated size.The rapid development of Beijing’s digital economy injected new impetus. The added value of the digital economy reached 1625.19 billion yuan in the year, up 13.1 percent over the previous year, accounting for 40.4 percent of the city’s regional GDP.As the annual economic reports of local governments are being released, many local governments are also planning their economic priorities for 2022 and have taken a series of concrete measures to ensure a stable economic opening in the New Year.Recently held a series of local two sessions to release important signals.So far, 29 provinces and cities have announced their economic growth targets for 2022, almost all of which are higher than their respective two-year average growth rates for 2021. Among them, nearly 70 provinces and cities have set their GDP growth target for 2022 at 6 percent or above.To stabilize growth, stabilize industrial economic growth, stimulate consumption potential, expand effective investment, and reduce the burden of bailout to stimulate the vitality of market entities have become an important focus.Among them, investment, both old and new infrastructure, and emphasis on old city reconstruction, housing security;In terms of consumption, green consumption, cultural and tourism consumption and rural consumption have become important driving forces.We need to strike a combination of measures to ensure steady growth.Anchor to achieve a “stable opening” of the New Year, all regions to step up the deployment of the first quarter of the specific work.On January 20, the Shaanxi provincial government issued the “Opinions on Stabilizing Economic Growth in the first Quarter of 2022”, proposing 10 specific policies and measures, including the policy of providing assistance to enterprises with real economic benefits, tapping potential and boosting industrial economy, sparing no effort to expand effective investment, and adopting multiple measures to promote rapid recovery of consumption.In addition, Hubei province held a meeting to promote the “good start” of the first quarter, emphasizing the “good start”, “steady opening” and “good opening”, and making detailed arrangements for industries, projects, investment and consumption and exports.Zhang Jun, chief economist of Morgan Stanley Securities, told The Economic Information Daily that a “good start” will help signal policy easing, boost enterprise production and business expectations and restore market confidence, as a result of a number of policies being launched in advance.With local governments planning a new round of measures to stabilize growth, the construction of reserve projects is expected to accelerate, which will lead to the early release of demand, and thus play the role of “early introduction, early implementation and early effect”.Looking ahead to 2022, the industry believes that the key to steady growth lies in expanding domestic demand.On the one hand, we will expand effective investment, give full play to the role of basic investment in supporting the bottom line, and appropriately advance infrastructure investment.On the other hand, we will promote the recovery of consumption and strengthen the growth momentum of consumption.Fan Ruoying, a researcher with the Bank of China Research Institute, told The Economic Information Daily that more efforts should be made to mobilize private investment and guide financial institutions to increase credit support to private enterprises to reduce financing costs.We will make better use of special bond funds to drive nongovernmental funds.Advance layout represents the future economic development direction of the relevant projects.In terms of consumption, the first is to accelerate digital technology to empower offline consumption and further boost the growth of online consumption.Second, restore growth of service consumption;Third, we will accelerate the upgrading of the product supply structure to better meet consumer demand.Gao ruidong analyzed that many places have raised their fixed asset investment growth target for 2022, and proposed “to start effective investment battle”, indicating that stable investment has become the key to stabilizing the economy.On the one hand, we adopted a proactive fiscal policy to improve the efficiency of budgetary funds and special debt funds.On the other hand, we need to leverage more nongovernmental investment, stimulate the vitality of private investment, and develop a market-led mechanism for inward investment growth.In addition, during the local TWO sessions, many places have made plans on green and low-carbon development, digital transformation, and strengthening and reinforcing the chain of the industrial chain to speed up high-quality economic development and industrial upgrading.In 2022, local governments will promote the deep integration of industries such as the Internet, big data and artificial intelligence, and build a group of strategic emerging industries with their own characteristics, complementary advantages and reasonable structure, Zhang said.Among them, the layout of high-end manufacturing investment can not only promote the upgrading of the manufacturing industry itself, but also promote the upgrading and transformation of consumption and infrastructure.In addition, the construction of “carbon neutral” green industry will become another important focus.Local governments will increase the construction of upstream solar power, wind power and other new energy, and increase investment in downstream new-energy vehicles and charging piles and other related industries.