How to deal with the challenge of the global economy？
2017 will be a year of challenges and opportunities coexist, the world economy will face a huge challenge. As a manufacturer and services vendors of carbon steel pipe, welded steel pipe, line pipe, ERW pipe, LSAW steel pipe, Shinestar Group has always been focused on the development of the global economy. Today, Shinestar steel research institute would like to talk the method of China how to deal with the challenge of the global economy.
Firstly, look for the balance of the fiscal and monetary policy combination, carefully deal with it. From the Angle of demand, if you take more loose fiscal policy, it is good for economic growth but not conducive to reduce debt. Loose monetary policy can support aggregate demand, encourage private spending, but also may bring negative effects, such as low long-term interest rates are likely to cover up the structural problems of the economy and financial system, and squeeze profits leads to the more risky loans.
Secondly, continue to promote the structural reform is important. Low-income countries can focus on improving infrastructure, legal system, promote the development of capital market, etc. Developed economies can focus on improving labor supply and create better innovation incentive mechanism, and improve productivity growth. In general, improve infrastructure, strengthen the banking system robustness and medium can help you in all countries.
Thirdly, should continue to open international trade development. International trade to optimize the allocation of resources, improve the specialization of production, reduce the production cost, eventually bring economies of scale and increase to comprehensive economic prosperity; Also can promote the spread of knowledge and technology, new product research and development and productivity growth. International trade back can only deepen and delay the downturn of economic growth, not conducive to economic prosperity.
Fourth, promote inclusive growth. Many countries need to continue to strengthen the social safety net, improve health care, education and other infrastructure and conditions, to achieve more professional and regional flow of personnel, taking tax incentives to encourage women into the labor market, etc.
Fifth, face and deal with the economic transformation of the digital revolution correctly. While strengthen the social security system, improve the level of education, further strengthen vocational training and technology promotion, promote production quickly and effectively to reallocate resources to the most productive industries and departments, etc., to support people to adapt to the new job requires as soon as possible, and develop new technology into productivity.
Sixth, the international community needs to coordinate global policy combination, to revive the economy, benefit sharing. International coordination can make the individual countries support demand measures to produce more positive, the positive spillover effect, so as to strengthen its global effect, create more policy space.
In a word, the multiple challenges need strong, coordination of policy measures. Demand management should be in parallel with a reform of the supply side, fiscal, monetary policy, structural reform needs to cooperate, adjust measures to local conditions. the policy measures of each country should be coordinated, have the effect of auxiliary to each other.
Oportunities and challenges which China's economic development facing is on the rise, Shinestar Group will also be a scientific analysis of the new features of the international situation, efforts to seize opportunities, meet challenges and strive to produce more high quality galvanized steel pipe, welded steel pipe, line pipe, ERW steel pipe, LSAW steel pipe and other products, as with the international competitiveness of steel enterprises.