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PM: economy at critical moment of recovery

(Xinhua)
Updated: 2009-06-17 20:30

BEIJING - Chinese Premier Wen Jiabao said Wednesday China's economy is at a critical moment as it begins to recover "steadily".

Wen told an executive meeting of the State Council, China's Cabinet, that economic performance had started to show positive changes, favorable factors were increasing, the overall situation had stabilized and was moving upwards.

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He said the government should continue a pro-active fiscal policy and moderately relaxed monetary policy.

Investment growth kept accelerating, consumption maintained a rapid and steady increase, and domestic demand played a stronger role in boosting economic growth, said Wen.

Agricultural and industrial production grew, and regional coordinated development was making progress, said Wen.

The financial market was stable, and investor confidence stronger. Urban employment kept rising, and reconstruction of areas affected by last year's May 12 earthquake was speeding up, said Wen.

Government measures to fight the global economic crisis proved correct and effective, and should continue to be implemented and improved according to the changing situation, he said.

But it should also be noted that the foundation for economic recovery was not stable and many uncertainties remained, said Wen, citing sluggish exports, the fiscal deficit and trade protectionism.

Wen called for clear-headed judgement and readiness for difficulties and complexities that might occur in the long term.