BEIJING- China’s economy has grown 3 percent over the past three quarters and is stabilizing on an “upward trend”, Chinese Premier Li Keqiang said, vowing to continue to support the economy with policy measures.
The comments were made in a meeting with International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Saturday during the Asean summit in Cambodia, according to a statement released by the Chinese foreign ministry on Sunday.
Premier Li also said China was working hard to keep market operations, employment and prices stable, the statement said.
“We will continue to promote the comprehensive implementation of a package of policies and measures for stabilizing the economy with full effect …and strive to achieve better results throughout the year,” Li said.
While the government has sought to support the world’s second-largest economy with more than 50 measures since late May, the latest figures out of China have pointed to a slowdown.
Recent data showed exports and imports unexpectedly contracting, inflation slowing and new bank lending tumbling.
China on Friday also eased some of its strict pandemic restrictions, offering some respite from the zero-COVID strategy that has curbed economic and industrial activity in the country.
China has created more than 10 million new urban jobs in the first 10 months of the year, Li said. China aims to keep the urban jobless rate below 5.5 percent and to create more than 11 million new urban jobs this year.
“Countries should strengthen cooperation and macroeconomic policy coordination, so as to form synergy to maintain the stability of the world economy and prevent recession,” Li said.
An unexpectedly weak run of Chinese economic data this month has raised the heat on policymakers to deliver more stimulus measures, but it also shows the limited effect more monetary easing and infrastructure spending can have.
Signs of weakness are emerging from across the economy: exports fell; inflation slowed; new bank lending tumbled. And all despite the authorities bucking the global trend so far this year and deploying monetary and fiscal easing this year.
Analysts say the weak data may increase pressure on policymakers to deliver even more stimulus – JPMorgan and Goldman Sachs analysts said in research notes on Friday they expected a 25 basis point rate cut in coming weeks.
But the latest figures also suggest that the stimulus would not have the desired impact as long as domestic and external demand remain subdued, especially as China pursues a policy of eradicating COVID-19 outbreaks as soon as they occur.
