Premier says to balance stable, fast economic growth and inflation control

2008-07-27 15:45:15 GMT       2008-07-27 23:45:15 (Beijing Time)       Xinhua English

BEIJING, July 27 (Xinhua) -- Premier Wen Jiabao has said China should strike a balance between stable, comparatively fast economic growth and inflation control in macroeconomic management.

Wen made the remarks during three symposiums held earlier this months by the State Council on the country's economic situation, which were presided over by Wen and attended by provincial leaders and economic experts, covering topics on finance, real estate, job creation and inflation control.

Wen said the country should make efforts to secure a steady and comparatively fast economic growth, and the task was set not only for this year but also for next few years.

The country should also improve economic structures, give a full play to both domestic and foreign markets and do a good job in carrying out reform and opening up.

Wen added that effective solutions should be given to tackle key problems in different regions and the country should stick to enhancing development through reforms.

Economic scholars agreed that the government's recent macroeconomic controls were effective and the country's economy was developing in the expected direction.

They also suggested that the country formulate sounder policies in keeping a stable and relatively quick economic growth, controlling inflation and creating more jobs.

Local leaders from Guangdong, Shandong, Anhui, Liaoning, Shaanxi, Hubei provinces and Guangxi Zhuang Autonomous Region said in the first half, local economies were on the fast growth track, tax revenues kept on growing and people's livelihood had been further improved.

However, they said there was still big pressure coming from inflation, short supplies of coal, electricity and oil and challenges on export.

Wen said the government would put maintaining steady and fast economic development and stabilizing basic prices at the top of its agenda for macroeconomic control in the second half of this year.

He called on leaders at all levels nationwide to closely track international economic situation and changes, to study new problems and enhance the farsightedness, flexibility and effectiveness of macroeconomic controls.

Figures showed the country's gross domestic product (GDP) grew 10.4 percent in the first half over the same period last year. The country's consumer price index (CPI), the main gauge of inflation, rose 7.9 percent in the first half.

The People's Bank of China (PBOC), the central bank, said in a web announcement on Sunday that it would take securing a steady and fast economic development and easing inflation as its key task in the second half of this year.

The PBOC said it would give further supports to the farming sector, quake reconstructions, local economy development and small enterprises.

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