Subscribe free to our newsletters via your
. Earth Science News .




POLITICAL ECONOMY
China to focus on reviving economic growth: PM
by Staff Writers
Beijing (AFP) July 10, 2012


China's Wen says stabilising growth top priority
Beijing (AFP) July 10, 2012 - Chinese Premier Wen Jiabao said Tuesday that stabilising the country's economic growth was a "top priority", and authorities would encourage more investment.

"Stabilising economic growth is not only a top priority, but also a long-term arduous task," Wen said, following the release of data showing a slowdown in the expansion of the world's second-largest economy.

Wen said encouraging domestic consumption, diversifying exports and boosting government investment would provide engines for growth.

"Currently, it is important to promote reasonable growth in investment," he said in a statement.

The remarks came just three days before China announces economic growth figures for the second quarter, which are widely expected to confirm a further slowdown of the economy.

Trade data released on Tuesday pointed to the slowdown, with imports falling in June compared with May.

The government also said on Monday that the inflation rate had fallen to 2.2 percent in June, its lowest level for two-and-a-half years.

China's economy grew an annual 8.1 percent in the first quarter of 2012 -- its slowest pace in nearly three years.

Economists expect the country's gross domestic product rose 7.6 percent in the second quarter from a year earlier, according to a poll by Dow Jones Newswires.

China early this year set an annual economic growth target of 7.5 percent, down from expansion of 9.2 percent last year and 10.4 percent in 2010.

The government last week cut interest rates for the second time in a month, as part of efforts to avert a hard landing.

The government has also cut reserve requirements -- the amount of money banks must hold in reserve -- three times since December last year.

Chinese Premier Wen Jiabao said Tuesday that stabilising growth was a "top priority", after fresh data raised more worries of a slowdown in the world's second-largest economy.

"As a big developing country, a certain speed of economic growth must be maintained," Wen said. "Stabilising economic growth is not only a top priority, but also a long-term arduous task."

His comments came shortly after the government reported that demand for imports fell more sharply than expected in June, leading to a widening of the trade surplus and stoking concerns about an economic slowdown.

A day earlier China said inflation slowed in June to its lowest level in 29 months, giving the government more flexibility in its efforts to reboot the economy.

Wen said encouraging domestic consumption, diversifying exports and boosting government investment would provide drivers for growth.

"Currently, it is important to promote reasonable growth in investment," he said in a statement.

His remarks came just three days before China is due to announce economic growth figures for the second quarter.

China's economy grew an annual 8.1 percent in the first quarter of 2012 -- its slowest pace in nearly three years.

Economists expect the economy to have grown 7.6 percent in the second quarter from a year earlier, according to a poll by Dow Jones Newswires.

China early this year set an annual economic growth target of 7.5 percent, down from expansion of 9.2 percent last year and 10.4 percent in 2010.

Among the measures already taken to avert a hard landing, the government last week cut interest rates for the second time in a month.

The government has also cut reserve requirements -- the amount of money banks must hold in reserve -- three times since December last year.

Top leaders have urged a move away from exports and the promotion of domestic consumption as the key engine of economic growth.

The nation's trade surplus hit $31.73 billion in June, up 42.9 percent from the same month last year, the General Administration of Customs said on Tuesday.

While exports for the month rose 11.3 percent year-on-year to $180.21 billion, imports climbed just 6.3 percent to reach $148.48 billion, according to the government's data.

"While exports increased at a low level, growth of imports was sharply slower than exports as domestic demand declined due to China's slowing economy," customs spokesman Zheng Yuesheng told reporters.

Compared with May, exports in June declined 0.5 percent and imports were down 8.9 percent.

"The data overall suggest that domestic investment and global growth are slowing," Alaistair Chan, an economist with Moody's Analytics, said in a research report.

Slowing domestic growth would prompt China to further ease monetary policy while at the same time boosting investment, analysts said.

Wen's remarks on Tuesday came after he warned at the weekend that the country's economy faced "downward pressure" and called for more aggressive moves to keep growth on track.

"China will definitely continue to introduce monetary easing policies," said Citic Bank International's chief economist, Liao Qun.

"There may be one interest rate cut and two cuts in the banks' reserve requirement ratio in the second half."

.


Related Links
The Economy






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle








POLITICAL ECONOMY
Daily deal industry shows no evidence of slowing down
Houston TX (SPX) Jul 10, 2012
Over the past year, some news reports have questioned the long-term viability and popularity of daily deal companies, but the industry shows no evidence of slowing down, according to a new study from Rice University. In the study, "How Businesses Fare With Daily Deals As They Gain Experience: A Multi-Time Period Study of Daily Deal Performance," Utpal Dholakia examines performance of daily ... read more


POLITICAL ECONOMY
Japan pushes ASEAN to lift export restrictions

Report faults Fukushima response

Fukushima was 'man-made' disaster: Japanese probe

Aussie patrol boats are 'under pressure'

POLITICAL ECONOMY
Naturally adhesive

SMOS satellite measurements improve as ground radars switch off

New technique could reduce number of animals needed to test chemical safety

Physicists find chink in the Batsuit

POLITICAL ECONOMY
30% of fish stocks overexploited: UN agency

Eddies, not sunlight, spur annual bloom of tiny plants in North Atlantic

Top marine scientists warn reefs in rapid decline

Hosepipe bans lifted in Britain after record rains

POLITICAL ECONOMY
Argentina court upholds glacier protections against mining

Study: Wrong diet doomed 1912 polar try

Scientists to produce first 3-D models of Arctic sea ice

Canada builds up arctic region defenses

POLITICAL ECONOMY
Brazil has laws that protect against "Big Food" and "Big Snack"

What's cooking? The UK's potential food crisis

US drought hits global grain outlook: FAO

Vertical farm in abandoned pork plant turns waste into food

POLITICAL ECONOMY
Russian flood victims pick through damage

Russia mourns flood dead as questions mount

Russian official sacked over slack flood response

Indian floods kill threatened rhinos

POLITICAL ECONOMY
War vets threaten Angola elections over unpaid pensions

Mali to form 1,200-strong elite force to protect transition

UN soldier dies as DR Congo rebels take Uganda border post

Developing world has less than five percent chance of meeting UN child hunger target

POLITICAL ECONOMY
Seabirds studied for clues to human aging

Hong Kong's land shortage forces bereaved to sea

Diet of early human relative Australopithecus shows surprises

Outside View: 18th-century words for today




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement