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      China able to deliver 2014 growth targets, adapt to new normal

      2014-12-12 08:58 Xinhua Web Editor: Gu Liping
      1

      China is capable of delivering its social and economic goals for 2014 "relatively well", with the economy staying within a reasonable range, a statement issued after the Central Economic Work Conference stated on Thursday.

      The official statement came as a string of weak economic data stoked speculations that China may miss its 7.5 percent annual growth target.

      At Thursday's meeting, which will set the tone for next year's economic policies, Chinese leaders stressed the economy still faces many challenges and "relatively big" downward pressures such as increasing difficulties for businesses and the emergence of economic risks.

      Although the risks are generally within control, it will take a while for China to gradually dissolve them, the statement said.

      The statement did not give a specific growth target for 2015, which is usually made public in March, but said the government will be "reasonable" when setting up goals and maintaining the flexibility of its macro-control policies.

      China will continue targeted and structured control policies to maintain a medium- and high-speed growth for the economy, the statement said. It will actively adapt to the economic "new normal" of slower speed but higher quality.

      China will strive to keep its economic growth steady in 2015, sticking to a proactive fiscal policy and prudent monetary policy , while fostering new growth impetus through innovation and the increasing role of the market, the statement said.

      The meeting also pledged to speed up agriculture development, improve policies for regional development and give more attention and support to low-income families.

      Dragged down by a housing slowdown, softening domestic demand and unsteady export, China's growth slid to a low not seen since the 2008/2009 global financial crisis in the third quarter.

      In the first three quarters, China's gross domestic output expanded by 7.4 percent.

      To support the faltering growth, the central bank last month decided to lower the one-year benchmark lending rate by 40 basis points and the one-year deposit rate by 25 basis points, the first interest rate cuts in more than two years.

      The move gave a big boost to the stock market, but with China's deflation risk on the rise, analysts are expecting further easing to invigorate the economy.

      Data out on Wednesday showed China's consumer prices grew by their slowest pace in five years in November, rising by 1.4 percent year on year.

      This is the third month in a row that China has seen its CPI rise within 2 percent. For the first 11 months, inflation grew 2 percent, well below the 3.5 percent full year target set by the government.

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