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China Daily Website

Premier: China's economic growth stabilizing

Updated: 2012-10-18 09:31
( Xinhua)

BEIJING -- China's economic growth has started to stabilize and witness positive changes with the economy running well in the third quarter, Premier Wen Jiabao said during recent talks on economic conditions.

China's economy will continue to stabilize as government policies continue to be implemented, Wen said, expressing confidence in the economy while discussing current economic conditions with industrial experts, enterprise owners and economists.

The discussions were held on Friday, Saturday and Monday.

China will face considerable difficulty in the last quarter, but the government is confident in achieving its full-year economic and social development goals through hard work, said Wen.

China witnessed a rebound in exports, stable consumption growth, a significant drop in price growth, better employment conditions and improvements in economic restructuring in the third quarter, said Wen, citing speeches from discussion participants.

Related reading: Low inflation stimulates stable economy

Despite the difficulties, there have been improvements and turning points in economic development and restructuring, said Wen.

China's purchasing managers' index improved to 49.8 percent in September from 49.2 percent in August, ending a four-month decline in the manufacturing PMI.

Wen said economic structures have also changed for the better in multiple industries.

Although there have been difficulties in traditional industries, high-tech industries are in relatively better condition, he said, adding that the agriculture and service sectors are performing better than the industrial sector.

But Wen warned that the effects of the international financial crisis are still emerging and the external environment for China's economic development is grim.

"We should be aware that the foundation for a stabilized economy is not solid enough due to significant drops in corporate profits and fiscal revenue growth," he said.

Wen called for further implementation of previous policies that will help maintain growth, as well as the promotion of reforms.

Related reading: Pushing reform forward

Wen said the results of China's property market regulation are still unstable, adding that tightening policies should be firmly maintained and further improved in the long-term with more market and legal measures.

China's economy expanded by 7.6 percent year-on-year in the second quarter, slowing to its lowest rate in more than three years.

In order to buoy growth, China's central has cut the reserve requirement ratio for banks twice and lowered benchmark interest rates this year.

The National Bureau of Statistics is scheduled to issue the county's third-quarter GDP on Thursday.

China's annual economic growth target for 2012 stands at 7.5 percent.

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