A four trillion yuan (585 billion dollar) stimulus package is starting to boost China's economy, but the government is prepared to take stronger measures if needed, Prime Minister Wen Jiabao said.
"The stimulus measures have shown initial effects and produced good results in certain areas," Wen said in an online chat with web users over the weekend, which was widely circulated in the state media Sunday. "We must fully realise we are facing a long-term and arduous task... we are ready to take firmer and stronger actions whenever necessary."
Wen cited rising loans, retail sales in January and increasing power output and consumption since the middle of February as signs of relief. The export-dependent Chinese economy expanded by nine percent in 2008, down steeply from 13 percent growth the year before. In the fourth quarter of last year, it grew by just 6.8 percent.
China has released only limited data about how its economy has performed since the beginning of 2009, but some of the figures have been slightly more positive than expected. During his webchat, Wen pledged to support small- and medium-sized companies and expressed concern for the hardships suffered by up to 20 million migrant workers who have already been laid off by factories hit by the global crisis.
He said there would be broad financial support for China's vast rural areas, details of which are expected to be given in Wen's annual work report to parliament on Thursday.
China has set an official economic growth target of eight percent in 2009, considered by the government to be the minimum needed to prevent unemployment reaching a level where social unrest breaks out. In an effort to limit the domestic impact of the global financial crisis, Wen in November announced a four trillion yuan stimulus package, largely aimed at pump priming consumption and stimulating growth in rural areas.
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