China Premier Wen:Economic Difficulty To Continue For A While
BEIJING (MNI) - China's economic difficulty will continue for a while, Chinese Premier Wen Jiabao said over the weekend, reiterating that the government will step up policy fine tuning in the second half to support growth.
Speaking during a work inspection tour in southwestern Sichuan Province, Premier Wen said that government measures to stabilize economic growth are taking effect, that current economic growth is still within the targeted range and that the slowdown of the economy is moderating.
"But we must clearly understand that the economy has not established a steady recovery momentum. Economic difficulty will continue for a while," Wen said.
Wen repeated that the government will step up the size and scope of its policy fine-tuning in the second half.
The Chinese economy grew 7.6% y/y in the second quarter, barely above the central government's 7.5% target for the whole year.
For the first half of the year, the economy grew 7.8%.
The People's Bank of China cut interest rates early this month, the second cut in less a month to boost economic growth.
Another cut in banks deposit reserve requirement is expected to be announced in coming days.
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