Premier Li Keqiang: Proactive fiscal policy and prudent monetary policy will be continued

According to the online news released by the Chinese government, Premier Li Keqiang, today chaired a State Council executive meeting and analysed the Chinese economic situation in the first quarter of 2013, as well as making the deployment of the next phase of work. Previously, the National Bureau of Statistics had released data showing that in the first quarter of 2013 Chinese GDP grew by 7.7% compared to the same period of 2012, and the 7.7% quarter growth is slightly lower than the 7.9% growth in the fourth quarter of last year. China’s GDP growth rate in the past one year’s time has been running around 7% without breaking the ceiling of 8%.

The meeting held that the operation of the national economy in the first quarter of 2013 was still stable, the overall rate of economic growth, new jobs creation in urban areas as well as other key indicators were at reasonable level. At present, China is at an important stage of industrialization, urbanization, economic transformation and upgrading with great potential for development. Facing complex domestic and international environment, the government pledged to enhance the government capability in term of predictability, pragmatic and solid work.

The meeting stressed the need to maintain the continuity and stability of macroeconomic policies and continue to implement the proactive fiscal policy and prudent monetary policy, and enhance the policy relevance to achieve steady growth, inflation  and risk control. At the same time, the meeting again emphasised the release of bonus of reform, and intensifying the restructuring, stimulating the vitality of the enterprise and the market while maintaining stability, increased employment and income, improved quality and efficiency, strengthened energy conservation, environmental protection, and strive to build upgraded version of China’s economy (中国经济升级版).

The meeting also deployed the focus of the next phase of the government work.

(A) To actively expand the effective domestic demand through improving consumption policies to enhance the consumption capability, fast development of the service industry and nurturing the new consumption in the information, medical, pension, culture industries. Another focus will be to maintain a reasonable scale of investment, strengthen the construction of urban roads, rail transportation, environmental protection infrastructure. Development of environment-friendly industries is also important. The government will promote scientific and technological innovation, and to accelerate the elimination of backward production capacity and expand the market capacity for the advanced environment-friendly industries.

(B) To enhance the agricultural foundation. The government will make policies to Increase effective supply and make sure that the agriculture funding will be paid out as soon as possible and in full payment.

(C) To ensure the improvement of people’s livelihood. The government will enact policies to promote employment of college graduates and other key groups by encouraging multi-channel for employment such as supporting the entrepreneurship. At the same time, the government will aim at improving the social security system and gradually eliminate people’s worries regarding pension, health care and so on.

(D) To deepen reform and opening. The government will assist to make cancellation and adjustment of administrative examination and approval procedures to stimulate private investment and social entrepreneurial activities.

(E) To effective guard the national economy against the risks of local government debt, and other risks.

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