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Chinese economy faces big downward pressures: Premier Li

China registered 7.4 percent growth last year, slowest in 24 years. A recent IMF forecast said China’s growth rate would further decline to 6.8 this year and 6.3 next year.

Chinese economy faces big downward pressures: Premier Li

Admitting that China’s economy is facing considerable downward pressures due to the slowdown, Premier Li Keqiang said the new GDP target of around 7 percent set for this year is not easy to meet but the government has host of policy to halt the slide.

“This year we set the anticipated GDP target approximately 7 percent. It is true that we have adjusted downward our GDP target but it will by no means easy for us to meet this target,” he said at his annual press conference at the end of the 10-day meeting of the legislature, the National People’s Congress (NPC).

China registered 7.4 percent growth last year, slowest in 24 years. A  recent IMF forecast said China’s growth rate would further decline to 6.8 this year and 6.3 next year. Li said because China’s economic aggregate is expanding it size now is valued at about USD 10 trillion which is equivalent to the total economy of a medium sized country.

“I recognise that there is considerable downward pressure on China’s economic growth and we still face multiple challenges. This requires that the government must strike a proper balance between maintaining steady growth and making structural adjustments,” he said. Referring to the concerns and worries about slow growth in China, he said, “we must ensure Chinese economy operate within a proper range”.

“If our growth speed comes close to lower limit of the proper range of economic operation and affects the employment situation and people’s livelihood incomes, we are prepared to step up targeted macro-economic regulation to boost the current market confidence while at the same time maintain continuity about our microeconomic policies to anchor long term market expectation,” he said. “The good news is that in the past couple of years we did not resort to massive stimulus measures for economic growth. That has made it possible for us to have fairly ample room to pursue economic regulation and we still have host of policy instruments at our disposal,” he said. 

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