Constraints of Effective Investment and Policy Orientation of Zhejiang Province

Insufficient effective investment is the reason for the slackening of economic growth and restructuring endeavor in Zhejiang province since the international financial crisis in 2008. Efforts to expand it is influenced by such constraints as insufficient supplies of production factors,higher standards of energy saving and emission reduction,preferences in project investment,repetitive construction and inadequate labor quality,which puts Zhejiang face to face with a series of challenges and problems. In order to speed up its economic restructuring and industrial upgrading,Zhejiang has made greater efforts for more effective investment since 2012,focusing on optimizing investment structure and increasing investment efficiency. From the relevant economic data since 2013,it is clear that the increase in investment has not brought about corresponding growth of GDP,which indicates that problems in the economic structure are graver than expected,that the investment-growth approach that used to be effective no longer works,and therefore,there is an urgent need to pursue economic growth on the basis of structural optimization. While driving to expand effective investment,more emphasis should be given to market orientation and policy direction to smooth out bottleneck constraints,resolve conflicts,optimize investment structure,raise investment efficiency and promote industrial upgrading and economic restructuring.