BEIJING (AP) — China’s economic woes that have brought
growth to a three-year low will continue for some time, but the slower
expansion remains within expectations, Premier Wen Jiabao said Sunday.
Speaking
during a tour of the southwestern city of Chengdu, Wen said Chinese
need to recognize the seriousness and complexity of the challenges the
country faces. But he added that China’s economic fundamentals remain
favorable.
"At present, our country’s economic growth rate remains
within the target range set earlier this year and we are seeing the
effectiveness of stabilization policies," Wen said in remarks posted on
the central government’s official website.
The government will
prioritize job creation and provide financial aid and tax breaks to
companies suffering from slowing exports due to sinking overseas demand,
Wen said. Private investment will be encouraged and the government will
promote industrial upgrading and urbanization to spur consumption, he
said.
"All regions and departments need to proceed with even greater determination and courage," Wen
said.
His
comments follow the government’s announcement Friday that the world’s
second-largest economy grew by 7.6 percent in the three months ending in
June over a year earlier. That was the lowest since the first quarter
of 2009 during the depths of the global financial crisis.
Growth
was down from the previous quarter’s 8.1 percent, damping hopes that
China can make up for U.S. and European weakness, but in line with the
government’s official target of 7.5 percent for the year
Private-sector
forecasters say the economy may have bottomed out during the first two
quarters and China still is likely to achieve its target for the year.
Export
growth has fallen and consumer spending weakened despite stimulus
measures including two interest rate cuts since the start of June. The
government also is pumping money into the economy through higher
investment by state-owned industry and more spending on low-cost housing
and other public works.
However, Beijing is moving cautiously
after its 2008 stimulus pushed up inflation and spurred a wasteful
building boom. Authorities have said curbs imposed on building and home
sales to cool surging housing prices will remain in place.
Copyright 2012 The Associated Press.