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NPC & CPPCC Annual Sessions > Biz & Economy > News
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Wen: Impact of financial crisis still spreadingBy (Xinhua)
Updated: 2009-02-28 15:31 The global financial crisis has not yet hit bottom and its impact is still spreading, said Chinese Premier Wen Jiabao during his first-ever online chat Saturday. He also promised that China is "ready to take firmer and stronger actions whenever necessary."
Wen said the major impact was on China's east coastal areas, where the economy is more export-dependent and labor intensive. The decline of international market demands also caused the unemployment of a great number of migrant workers. China's gross domestic product (GDP) grew 9 percent year-on-year last year, the lowest since 2001, when an annual rate of 8.3 percent was recorded. To cushion the blow of international financial crisis, Wen said China has announced a package of stimulus plans since last year, covering four aspects. The first is the announcement a 4-trillion-yuan (588 billion U.S. dollars) economic stimulus plan and tax cuts. The second is plans to revitalize ten key industries. The third is technical upgrading. The fourth is the building of a comprehensive social security network. Initial results, but temporary Wen said "the stimulus measures have shown initial effects and produced good results in certain areas and fields." For example, the country has seen consecutive growths in credit supply, with new loans standing around 440 billion yuan in November, 770 billion yuan in December and 1.63 trillion yuan in January, Wen said. He also cited figures on stronger retail sales and the rebound of power generation and use. Consumption rose 18 percent year on year in January, while power generation in the February 11-20 period increased 15 percent year-on-year, or up 13.2 percent from the first ten days of this month, he said. "Some key indicators showed the economic situation has somewhat turned better," he said. "But those were just temporary indices and couldn't be fully compared with the past figures." Wen said one indicator he valued most was power generation. "Staring from mid February, power generation and consumption have both resumed growth," he said. "We must fully realize we are facing a long-term and arduous task," he said. "We must strengthen confidence in the face of the crisis and be ready to take firmer and stronger actions when necessary," he said.
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