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China: No letup on stimulus policies

0 CommentsPrint E-mail Xinhua, October 7, 2009
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China sees its economy on an upward trend and will continue to implement the proactive fiscal policy and moderately eased monetary policy to support growth as the rebound is yet to be stable, said Chinese Finance Minister Xie Xuren Tuesday.

"We are seeing more positive signs and an up-ward trend in the Chinese economy. However, we are also soberly aware that the economic rebound is yet to be stable, firm, and balanced," said Xie in a speech to the plenary session of the International Monetary Fund (IMF) and the World Bank annual meetings held in Istanbul, Turkey.

"China will continue with the proactive fiscal policy and moderately eased monetary policy, further implement and improve the policy package, and ensure the achievement of our social and economic development goals," he told the meeting.

In the second quarter of this year, China's gross domestic product growth is 7.9 percent, faster than the 6.1 percent in the first quarter, which was the worst quarterly growth in a decade, dampened by a slump in exports.

The recovery was boosted by the active fiscal policy and moderately loose monetary policy the central government put into place late last year as well as a 585 billion-U.S. dollar stimulus package to spur domestic demand and investment.

Xie called on other countries to continue to strengthen macroeconomic coordination, maintain economic stimulus, implement appropriate and responsible fiscal and monetary policies, oppose and resist trade protectionism in any forms.

"We are seeing some positive signs in the world economy. However, the foundation of recovery is not yet solid. Uncertainties still remain," he said. "It will be a long and winding path towards a fully installed global recovery."

The IMF projected last week China's economy to grow by 8.5 percent this year and 9.0 percent in 2010, saying China will lead Asia out of the economic recession.

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