China´s Premier Wen says macro-economic controls cannot be relaxed yet -UPDATE
Monday, March 14, 2005 6:04:52 AM
afxpress.com
China's Premier Wen says macro-economic controls cannot be relaxed yet -UPDATE (Updating with further Wen quotes, background)
BEIJING (AFX) - Chinese Premier Wen Jiabao said that macro-economic controls imposed last year could not yet be relaxed
"We cannot stop when we are half way there," Wen told a nationally-televised news conference
He said macro-economic controls imposed last year had achieved initial results but the nation's economy still needed careful management. China raised interest rates last year for the first time in nine years. It also clamped down on lending to certain sectors of the economy seen as overheating and slowed the approval of some construction projects and land use transfers
"We have been successful in avoiding major 'ups-and-downs' in the economy, preventing excessive price hikes and keeping prices at a stable level, and maintaining stable and fairly rapid economic growth," Wen said. Last year's growth in gross domestic product was reined in at 9.5 pct and inflation kept at 3.9 pct. But the premier said China "musn't slacken our efforts in the slightest way" in its economic management
"Soaring prices" for capital goods will make it harder in 2005 to achieve the government's priorities of boosting grain output and farmers' income, he said
Coal, electricity, oil and transport are also in short supply, and growth in fixed asset investment could pick up again, Wen said
The premier also noted that Beijing still needs to create more jobs while promoting stable and fairly rapid economic growth
The government will combine policies to expand and to contract different sectors and will use administrative as well as economic tools to keep a lid on growth, Wen said. It will also embark on its "toughest battle in the reform process" this year to consolidate on its macro-economic successes
China will continuing reforming its financial, social security and rural sectors as well as improving corporate governance and share-holding structures at state-owned enterprises
"We mustn't stop, we musn't waste our previous effort," Wen said
Last week, Ma Kai, minister in charge of the powerful National Development and Reform Commission, also said at a news conference the government remains committed to keeping its current macro-economic policies in place, saying they would not be abandoned this year. |
