China’s Premier Says Chinese Economy in ‘Good Shape’

China's Premier Wen Jiabao said that the Chinese economy is in “good shape”

China's Premier Wen Jiabao said that the Chinese economy is in “good shape”, a confident proclamation that the world's fastest growing economy will not suffer a downturn.

Speaking at the World Economic Forum's Summer Davos meeting in Tianjin, Wen said that “China's economy is now in good shape, featuring fast growth, gradual structural improvement, rising employment and basic price stability.”

The country's growth will help the world economy recover, Wen said.

China's stock index reached its highest value in a week and the yuan grew strongest since a peg against the dollar was removed in July 2005 as better-than-expected economic figures for August allayed fears that the government may overreact in cooling the economy, which expanded 11.9 percent during the first quarter.

“Economic activity indeed was stronger than expected,” said Wang Tao, an economist for UBS AG. He predicts that China will allow the yuan to appreciate 2 to 3 percent more by the end of 2010 to ease pressure coming from the United States and other economies.

Manufacturing was up 13.9 percent in August compared to the same period a year ago, its highest in three months, and retail spending and lending data exceeded most estimates, according to the statistics agency and central bank documents which was released in September 11 in Beijing.

Another sign that the Chinese economy is accelerating is the rise in imports after stagnating a bit during the second-quarter following government efforts to cool the property market sector.

Posted by James Fried on Tuesday September 14 2010, 12:33 PM EST. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0