Chinese Premier Wen Jiabao said Wednesday the Asian giant's recovery was proceeding steadily, but efforts to reinvigorate the economy were at a critical stage, state media reported.
"China's economic performance has started to show positive changes, favorable factors are increasing, and the overall situation has stabilised and is moving in a good direction," Xinhua news agency cited Wen as saying.
"Our economy is at a critical moment as it steadily moves in an upward direction," Wen said in a cabinet meeting.
He warned "that the foundation for economic recovery is not stable and many uncertainties remain."
China would continue to carry out a proactive fiscal policy and a moderately easy monetary policy, according to the report, which cited a cabinet press release.
Investment growth was accelerating, consumption was maintaining a rapid and steady increase and domestic demand was playing a stronger role in boosting growth, Wen said.
The prime minister further said China's financial markets were stable, investor confidence was stronger and urban employment rising, it added.
"Government measures to fight the global economic crisis proved correct and effective, and should continue to be implemented and improved according to the changing situation," he was quoted as saying.
China announced a 580 billion dollar stimulus package late last year to help its economy, the world's third-largest, overcome the global financial crisis.
Wen's comments came as data released last week showed China's exports plummeted for a seventh straight month in May, down 26.4 percent year on year as result of severe downturns in the key North American and European markets.
But China's industrial output and retail sales growth both accelerated in May from previous months as stimulus measures kicked in, fuelling hopes that the country could lead a global recovery.
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