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China's economy to face difficulties in last quarter, says Wen

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Press Trust of India Beijing
Last Updated : Jan 25 2013 | 5:33 AM IST

China witnessed a rebound in exports, stable consumption growth, a significant drop in price growth, better employment conditions and improvements in economic restructuring in the third quarter, said Wen, who will be retiring by the end of this year after 10 years in power.

Despite the difficulties, there have been improvements and turning points in economic development and restructuring, state-run Xinhua news agency quoted him as saying.

China's purchasing managers' index (PMI) improved to 49.8 per cent in September from 49.2 per cent in August, ending a four-month decline in the manufacturing PMI.

Wen said economic structures have also changed for the better in multiple industries.

Although there have been difficulties in traditional industries, high-tech industries are in relatively better condition, he said, adding the agriculture and service sectors are performing better than the industrial sector.

But Wen warned that the effects of the international financial crisis are still emerging and the external environment for China's economic development is grim.

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"We should be aware that the foundation for a stabilised economy is not solid enough due to significant drops in corporate profits and fiscal revenue growth," he said.

Wen said the results of China's property market regulation are still unstable, adding tightening policies should be firmly maintained and further improved in the long-term with more market and legal measures.

China's economy expanded by 7.6 per cent year on year in the second quarter, slowing to its lowest rate in more than three years.

In order to buoy growth, China's central bank has cut the reserve requirement ratio for banks twice and lowered benchmark interest rates this year.

The National Bureau of Statistics is scheduled to issue the county's third-quarter GDP on Thursday.

China's annual economic growth target for 2012 stands at 7.5 per cent.

  

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First Published: Oct 17 2012 | 7:35 PM IST

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