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Domestic demand will be raised: Hu

(China Daily)
Updated: 2009-02-25 07:45

The nation will take "more forceful" measures to boost domestic demand, particularly consumption, to prop up the slowing economy, President Hu Jintao has said.

Related readings:  Economists: Chinese economy to recover in Q2  'China economy in good shape'

He made the comments at a Monday meeting of the Politburo, the Communist Party's top decision-making organ.

China is facing severe social and economic challenges this year as the global economy plunges deeper into recession. Some analysts say the economy might not grow at 8 percent, the minimum required for generating employment for millions of new job seekers this year.

Hu said the international financial crisis has not bottomed out and the downward pressure on the economy was increasing. "The adverse circumstances require us to fully utilize the advantages of our economy."

Hu said the Party has already outlines the key elements of this year's economic policy, and singled out the need to further boost consumption, which is critical to cushion the decline in exports.

The government announced a $586 billion stimulus package last November, to be used to build major infrastructure projects during 2009 and 2010. It has also introduced an array of measures to boost the development of eight key industries, while incentives for two more industries are in the making.