Premier Wen Jiabao warned about China’s near-term growth prospects. China’s PMI and Q2 GDP already show an economy that has at the very least dropped below traditional annual improvement.
“The economic growth rate is still within the government target range set early this year, and stabilization policies are working,” Wen said, according to government news site Xinhua.
The site added:
Dragged down by lackluster external demand and government efforts to cool the property sector, the country’s GDP growth slowed to a three-year low of 7.6 percent in the second quarter.
Wen said China’s economic fundamentals remain sound and the country still enjoys huge growth potential, citing the bumper summer harvest, cooling inflation and rising incomes.
However, the country’s economic rebound is not yet stable and economic hardship may continue for a period of time, the premier warned at a conference on Saturday in Chengdu city attended by provincial officials from Henan, Hunan, Guangxi, Sichuan and Shaanxi.
In the second half of the year, the government will “increase efforts to preset and fine-tune its policies, and make policies more targeted, foresighted and effective,” Wen said.
Douglas A. McIntyre