Econintersect: A number of headlines have screamed that Premier Wen Jiabao has warned that China’s economy is under pressure. But he also said, effectively, that it will not be a serious problem and that was not been mentioned as prominently, at least not in headlines, in articles early in the day. But looking past the headlines, most stories qualified the premier’s concern.
Later in the day (16 August 2012) Bloomberg Businessweek led a story with the following, a much less dramatic statement:
Hong Kong stocks fell as disappointing earnings underscored growth concerns even after after Chinese Premier Wen Jiabao said slowing inflation is giving more room for using monetary policy to support expansion.
A good summary of the premier’s remarks came from BBC News:
China’s Premier Wen Jiabao has warned that the country’s economy is under pressure and that it is facing problems that may last for some time.
However, he said that Beijing will be able to meet its growth target, despite those issues.
He said that easing inflation had given more room to policymakers to introduce measures to spur growth.
China has been hurt by slowing global demand for its exports and lacklustre growth in domestic consumption.
“We have the conditions and capabilities, and will be sure to fulfil this year’s economic and social development targets,” Premier Wen was quoted as saying by the Xinhua news agency.
GEI News has been reporting on the weakness in many areas of the Chinese economy, the collapse of inflation as measured by the CPI (Consumer Price Index) and the actual deflation occurring in the PPI (Producer Price Index).
- Wen Jibao warns China’s growth is under pressure (BBC News, 15 August 2012)
- Hong Kong Stocks Fall as Growth Concerns Temper Wen (Norie Kuboyama and Kana Nishizawa, Bloomberg Businessweek, 16 August 2012)
- China Exports: Economy Continues to Soften (GEI News, 10 August 2012)
- China Approaches Deflation (GEI News, 09 August 2012)
- China: Manufacturing Slowdown Continues (GEI News, 01 Augustr 2012)