Business | Economy
Chinese premier stresses focus on growth as economy slows
Maintaining strong and stable economic growth despite global turmoil is China's main priority, Premier Wen Jiabao has written, warning of growing domestic risks from a worldwide economic downturn.
- Reuters
- Published: 23:26 November 2, 2008
Beijing: Maintaining strong and stable economic growth despite global turmoil is China's main priority, Premier Wen Jiabao has written, warning of growing domestic risks from a worldwide economic downturn.
Wen made the warning in an essay for the ruling Communist Party's ideological journal, Seeking Truth (Qiushi), the China News Service reported on Sunday.
The chief macro-economic task of his government is "successfully maintaining the balance between the stable and relatively fast economic development and containing inflation", Wen said.
"Unfavourable changes" in the international economy may make it more difficult to achieve that balance, Wen wrote in the latest issue of the magazine, saying the priority for now is shoring up economic growth.
"Against the current international financial and economic turmoil, we must give even greater priority to maintaining our country's steady and relatively fast economic development," he wrote.
"We must be crystal-clear that without a certain pace of economic growth, there will be difficulties with employment, fiscal revenues and social development ... and factors damaging social stability will grow."
The article appears at a time of growing anxiety over the country's growth prospects. China's economy grew 11.9 per cent in 2007, but that rate slowed to 9.9 per cent in the first three-quarters of this year.
An official monthly survey showed China's manufacturing sector contracted sharply in October.
The purchasing managers' index (PMI) fell to 44.6 per cent, the lowest since the China Federation of Logistics and Purchasing began to compile it in January 2005, the CFLP said on Saturday.
A reading below 50 indicates contraction.
China cut interest rates on Wednesday for the third time in six weeks to help the world's fourth-largest economy ride out the reverberations of the global financial crisis.
A Chinese central bank spokesman said on Friday authorities were now no longer imposing strict limits on bank lending, as they seek to shore up growth.
The government will closely observe the effects of such policy moves in coming months, seeking to lay a firm foundation for growth next year, Wen said.
Share this article
Popular in Business
-
XPRESS
Way to go this DSF
A fun-filled route to guide you to all the happening dos in town
Business Editor's choice
-
What to expect at the Dubai Airshow
We preview what types of aircraft to expect at the Dubai Airshow
-
Air Arabia revamps its website
Upgraded site offers new features, accessible in range of languages
-
Dubai looks ahead to 2010 with new projects
Global visitor numbers up 4% on year and occupancy rates remain strong
