Hi friends! I am the financial broadcaster who is full of passion and can always find the exciting "economic heart" in the complex economic phenomena. Today, let's talk about that set of statistics that seem calm, but in fact contain a rich story.
Having said that, the latest data released by the National Bureau of Statistics shows that our consumer price index (CPI) has risen by a small amount, 0.1%, which can almost be said to be standing still. Doesn't it sound a bit like our embarrassing smile at domestic demand? Although this number is so small that it seems that we are stepping on a seesaw, one foot is empty, and the other is solid, but it has its extraordinary.
Let's take a closer look at the flavor behind this data. Food, tobacco and alcohol, these "small snacks" for our daily consumption, the price has even dropped. The transportation and communications sectors are also declining, as if to tell us that the cost of travel and connectivity is also quietly decreasing. Hey, isn't that great? Save money! But on second thought, this may also mean that ordinary people are beginning to "tighten" their daily consumption expenses, and it seems to be a bit of a "thrifty food" taste.
However, let's not forget, we still have that bright color - the entertainment consumption index has risen. Think about the concerts of those A-list stars, it is hard to find a ticket, it is really love-hate and hate-like. That's the magic of entertainment, making cold numbers show a little frenzy.
However, we can't just look at the superficial liveliness. Our country's GDP in the first quarter increased by 5.3% year-on-year, and we are proud of this achievement. But the question is, why is domestic demand growing so slowly? There are many reasons for this.
First of all, our economic structure. We have always focused on export trade, supplemented by investment, and domestic consumption, so we have to rank behind. Looking at the foreign trade data in the past six months, it increased by 6.1% year-on-year, exceeding the 21 trillion yuan mark for the first time, which is a new historical record. It's like our train, the locomotive in front pulls it, and the carriage behind it runs fast.
However, the data released by the central bank also shows a decline in the scale of social financing. What does this mean? Enterprises and ordinary people are a little pessimistic about the future economic expectations, the pace of investment has slowed down, and they are thinking about how to reduce debt. It's like when we're running, we suddenly feel short of breath and we have to slow down and adjust our breathing.
Let's take a look at the financial indicators of M0, M1 and M2. M0 is the cash we have on hand, M1 is M0 plus corporate demand deposits in the bank, and M2 is M1 plus time deposits in the bank. We found that both M0 and M2 are rising, and only M1 is falling. It's like water flowing into a big pool, but it doesn't go to the market, but it goes around in the pool.
This problem arises, enterprises and individuals are reluctant to spend money, and would rather save money or buy financial products. It's like our piggy bank, accumulating more and more, but spending very little.
Ordinary people are accustomed to saving, and this matter can be traced back to our ancestors. Think about it, we Chinese have not been rich for a few years, and after joining the WTO, the economy has grown rapidly. However, the saving habits of the older generation are deeply ingrained.
Another important reason is that people's livelihood security is not perfect. What we ordinary people are most concerned about is nothing more than unemployment, pension, children's education, medical treatment, and housing. None of these expenses are insignificant. Therefore, the money in our pockets has to be saved and saved.
Finally, let's talk about the impact of technological development on us. The emergence of driverless cars has made many people worry, once popularized, what will happen to those taxi and online car-hailing drivers? This reminds me of the "community group buying" and "community vegetable basket" back then, which also caused a storm. But then again, technology is a double-edged sword, bringing both convenience and impact.
Epilogue? Let's not do that. What we are talking about is that what the government should do is to coordinate distribution and improve the security system, so that the people have enough sense of security, so that they are willing to spend money to improve the quality of life. It's like injecting a shot in the arm into our economy, making it healthier and more vibrant.
Disclaimer? Our articles are designed to convey positive energy, do not engage in those bad guidance, and do not constitute any investment advice. If it involves copyright or character infringement, we will deal with it as soon as possible.
Well, that's all for today's financial broadcast. Thank you all for listening, and see you next time!