China has tools to cope with economic challenges despite slowing growth – premier

Economy7 minutes ago (Oct 14, 2021 04:21AM ET)

(C) Reuters. FILE PHOTO: Chinese Premier Li Keqiang is seen on a screen during a news conference held via video link, following the closing session of the National People’s Congress (NPC) in Beijing, China March 11, 2021. REUTERS/Martin Pollard

BEIJING (Reuters) – China has ample tools to cope with economic challenges despite slowing growth, and the government is confident of achieving full-year development goals, Premier Li Keqiang said on Thursday.

China’s major economic indicators are within a reasonable range, said Li at the opening ceremony of the Canton Fair in Guangzhou, although he acknowledged growth in the third quarter had slowed, due to a combination of factors.

“The factors challenging the stable economic operations are increasing, while the external environment has plenty of uncertainties and instabilities,” Li said.

Affected by high commodity prices and elevated shipping costs, mid- and downstream industries and business are facing a continued increase in operating costs, Li said.

He added that the energy crunch also adds to economic headaches, and sporadic COVID-19 outbreaks also deal a blow to the rebound in consumption and services.

“But we are adopting a range of measures to tackle and conquer those challenges and difficulties, and we have relatively ample tools in our reserve toolbox to cope with the challenges.”

The government will make sure that the momentum of inflation won’t pick up, and will ensure power supply this winter and next spring, Li said.

China’s economic growth is expected to slow to 5.2% year-on-year in the third quarter from 7.9% in April-June, as power shortages and supply bottlenecks hurt factories while sporadic COVID-19 outbreaks weighed on consumption, a recent Reuters poll showed.

China has tools to cope with economic challenges despite slowing growth – premier

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

About the author

Related