China's Premier Wen Jiabao has said that the economy is still under pressure, despite some positive signs in some sectors, the official Xinhua News Agency reported Wednesday.
During a two-day inspection tour to Zhejiang Province, he said the foundation for stable economic growth is still fragile and the economic hardships may continue for some more time.
In March, the government lowered its growth target to 7.5 percent from the previously projected 8 percent, reflecting weak growth in the U.S and worsening economic climate in Eurozone, one of China's major export markets.
However, Wen expressed confidence that the economy will fulfill the full-year growth target.
"We have the conditions and capabilities, and is sure to fulfill this year's economic and social development targets," he was quoted as saying.
In the second quarter, the GDP growth hit a three-year low of 7.6 percent with exports acting as a major drag on the economy.
Wen said easing inflation has given room for monetary policy adjustment in the economy.
Meanwhile, the Ministry of Commerce said on Thursday that China's foreign direct investment fell 8.7 percent from a year earlier in July to $7.58 billion.
The FDI inflow in the first seven months of the year totaled $66.67 billion, down 3.6 percent year-on-year.
by RTT Staff Writer
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