DALIAN, China (Reuters) ? China will keep monetary policy tight in order to contain inflation, Premier Wen Jiabao said on Wednesday, but he also signaled caution to avoid hurting the world's second-largest economy.
"We will keep overall price levels basically stable and prevent big swings in economic growth," Wen said in a speech at the World Economic Forum in the northeastern port city of Dalian.
Annual inflation fell to 6.2 percent in August from a three-year high of 6.5 percent in July.
Meanwhile, China will forge ahead with structural reforms and boost domestic consumption to sustain long-term economic growth, Wen said.
He said slowing economic growth was a result of the government's tightening steps and was "within expectations."
Risks in the global economy have not affected China's solid economic fundamentals, Wen added.
"Currently, the global economy is slowly recovering, but instability and uncertainty are growing," he said.
"Unemployment rates in the major economies continues to be high, and emerging economies face rising inflationary pressures," Wen said.
"All this shows that the global economic recovery will take a long time and be arduous and complex."
Some countries face growing sovereign debt risks, and this has sparked turmoil in global financial markets, he said.
China is willing to invest more in European countries, Wen said and called for European countries to recognize China as a market economy.
Wen delivered the opening speech at the event, known as "summer Davos," since the World Economic Forum first began staging the event in China in 2007.
Wen called for the international community to strengthen confidence and enhance cooperation to face the challenges and expressed confidence in the full recovery of the U.S. economy.
(Additional reporting by Coco Li and Li Ran; Writing by Kevin Yao; Editing by Ken Wills)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.