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Policy to focus on steady growth, stable prices: think tank

(Xinhua)
Updated: 2009-11-06 10:46

A Chinese government think tank leader said on Thursday China's macroeconomic policy in 2010 should focus on maintaining steady economic growth and stable prices.

Liu Shijin, deputy director of the State Council's Development Research Center, made the statement at a forum in Beijing on the first anniversary of the introduction of the government's 4-trillion yuan ($586 billion) economic stimulus plan.

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The government should adhere to its proactive fiscal and moderately easy monetary policies in 2010 to achieve fast and steady economic development, he said.

Liu forecast China's consumer price index (CPI) and producer price index (PPI) would turn to growth before the end of 2009.

He said high inflation was not a concern as he projected CPI at a moderate level of 3 percent at least for the first half of 2010.

However, inflationary pressure might mount in the second half and the possibility of an annual rate of 5 percent could not be ruled out due to increasing asset prices, Liu said.

So, a major task of the government for 2010 was to maintain sustainable economic development while keeping prices under control, said Liu.

On Nov 5, 2008, the State Council, China's Cabinet, announced a 4-trillion yuan economic stimulus plan aimed at boosting domestic consumer demand in the face of flagging exports.