BEIJING — China’s confidence in achieving its economic growth rate of around 7 percent this year is not weakened despite rising downward pressure, a senior official said on March 5.
The economic development has entered “new normal” and economic fundamentals are improving, said Xu Shaoshi, head of the National Development and Reform Commission, China’s top economic planning body, at a press conference.
The growth rate has turned down, but it is not in the mode of free fall, he told the press conference.
He noted that overseas demand was unlikely to improve and there remained potential risks in property market, financing, fiscal and enterprises, but there is still big room for measures of macro-management.
The government has strengthened macro-management including cutting the benchmark interest rates, reducing taxes and fees as well as intensifying investment, he said.
Some composite leading indicators are slightly rebounding although they stood at low levels in January, he said. “The rising market expectation will obviously have positive impact on economic development.”
The manufacturing purchasing managers’ index (PMI) in February registered at 49.9, up from 49.8 the previous month. The export leading index stood at 39.6 percent in February, one percentage point higher than that of January.
“The difficulties we are facing this year are not small, but we also have lots of advantages,” he said.
Emerging industries are developing well and enterprises’ capacities to withstand risks are also rising, he said.
In overall situation, the comprehensive deepening of reform is releasing great vitality of the market economy and inner driving force. The comprehensive rule of law is providing institutional guarantee for the reform and development, he said.