Chinese leader issues economic warning
Sunday 15 July 2012
China's economic woes that have brought growth to a three-year low will continue for some time, but the slower expansion remains within expectations, premier Wen Jiabao said today.
Speaking during a tour of the south-western city of Chengdu, Mr Wen said the Chinese need to recognise the seriousness and complexity of the challenges the country faces. But he added that China's economic fundamentals remain favourable.
"At present, our country's economic growth rate remains within the target range set earlier this year and we are seeing the effectiveness of stabilisation policies," Mr Wen said in remarks posted on the central government's official website.
The government will prioritise job creation and provide financial aid and tax breaks to companies suffering from slowing exports due to sinking overseas demand, Mr Wen said. Private investment will be encouraged and the government will promote industrial upgrading and urbanisation to spur consumption, he said.
"All regions and departments need to proceed with even greater determination and courage," Mr Wen said.
His comments follow the government's announcement on Friday that the world's second-largest economy grew by 7.6% in the three months ending in June over a year earlier. That was the lowest since the first quarter of 2009 during the depths of the global financial crisis.
Growth was down from the previous quarter's 8.1%, dampening hopes that China can make up for US and European weakness, but in line with the government's official target of 7.5% for the year
Private-sector forecasters say the economy may have bottomed out during the first two quarters and China still is likely to achieve its target for the year.
Export growth has fallen and consumer spending weakened despite stimulus measures including two interest rate cuts since the start of June. The government is also pumping money into the economy through higher investment by state-owned industry and more spending on low-cost housing and other public works.
However, Beijing is moving cautiously after its 2008 stimulus pushed up inflation and spurred a wasteful building boom. Authorities have said curbs imposed on building and home sales to cool surging housing prices will remain in place.
- 1 2015 General Election: Green party will not appear in TV debate alongside Ukip – says BBC
- 2 Canadian actor punched in face after 'Islamophobia' experiment goes wrong in wake of Ottawa shooting
- 3 Topshop at centre of row over body image as 'shocking' skinny mannequin photo goes viral
- 4 Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
- 5 Of course, teenage girls need role models – but not like beauty vlogger Zoella
'Nasa Confirms Six Days of Darkness in December': No, they don't - it's a hoax
Canadian actor punched in face after 'Islamophobia' experiment goes wrong in wake of Ottawa shooting
Tim Cook: Apple CEO comes out as gay publicly for the first time 'It's among the greatest gifts God has given me'
Topshop at centre of row over body image as 'shocking' skinny mannequin photo goes viral
Halloween 2014: From the Screaming Man of Pluckley to the 'White Lady' of the Tower of London - Britain's 20 most haunted places
Pope Francis declares evolution and Big Bang theory are real and God is not 'a magician with a magic wand'
Huge surge in Ukip support after EU funding row, according to new poll
Ukip ‘exploiting grooming scandal’ to secure party’s first police chief
Nigel Farage: 'There’s nothing wrong with white people blacking up'
Muslims, immigration and teenage pregnancy: British people are ignorant about almost everything
Maureen Lipman says 'she can't vote Labour while Ed Miliband is leader'
vary Attractive Salary: Austen Lloyd: MANCHESTER - AN OPENING AT A VERY HIGH Q...
£100 - £110 per day: Randstad Education Ilford: Nursery Manager Long term Ran...
£24000 - £25000 Per Annum plus company car and commission: Clearwater People S...
£45 - £65 per day: Randstad Education Bristol: Supply SEN Support Jobs in Bris...