Wen: Chinese economy to further stabilize

The Chinese economy is expected to continue to stabilize, and its rate of growth is still within the target set at the beginning of the year, Premier Wen Jiabao said on Tuesday.

Wen made the remarks at the opening of the sixth annual World Economic Forum's Annual Meeting of the New Champions 2012, also known as the Summer Davos, which began Tuesday and runs through Thursday in Tianjin.

Wen said macroeconomic indicators show that China's economic and social development is in good shape.

The speed of growth is still within the range set at the start of 2012, and although growth is slowing down, it is more stable, Wen said.

"As recent measures are being implemented and are taking effect, we expect the economy to further stabilize," he said.

China will make full use of its latitude on fiscal and monetary policy, tap the huge potential of domestic demand, and motivate the various localities and departments, Wen said.

"We will give greater priority to stabilizing growth, continue to follow a proactive fiscal policy and a prudent monetary policy, and maintain the continuity and stability of our policies," he said.

China will step up anticipatory adjustments and fine-tuning, pressing ahead with structural tax cuts and keeping the increase of money and credit supply at a steady and moderate level, Wen added.

"We will make stronger efforts to spur consumer demand, expand effective investment with a focus on bringing out the energy of nongovernmental investment, stabilize external demand, and bolster the real economy," he said.

Wen said he is fully confident that China has the conditions and ability to overcome the difficulties going forward, maintain steady and robust economic growth, and achieve development at a higher level and with better quality for a long time to come.