Chinese Premier Li Keqiang speaks during a session of the National People's Congress at the Great Hall of the People in Beijing on March 5. (Photo : Reuters)
Chinese Premier Li Keqiang said that the country has enough policy tools to make sure its economy stays afloat. He also said that there is no truth that the world's second-largest economy is currently undergoing a slump in its growth.
According to Premier Li, China has entered a "new normal," which means its economy is not rapidly growing anymore, but it is growing at a more balanced and stable pace.
Li, however, said that the economy may face some difficulties in meeting the annualized growth target of around 7 percent for 2015. He said that to achieve such a growth rate is no small feat. The target would require the country to earn over $10 trillion, which already equals the economy of a medium-sized country.
This growth rate of 7 percent is also the lowest target put into place by the country in 11 years. Still, this does not mean the economy is in any danger of failing.
The premier claimed that the country is just expected to perform in a more balanced and reasonable range.
"If growth slows [to an extent that] it affect employment and income, closer to the lower end of the range, we will [continue efforts to] assure markets of the economy's long-term outlook, while intensifying targeted fine-tuning to assure market confidence under current economic conditions," he explained.
According to Li, the country is also currently introducing more pro-growth measures, so it would not be difficult for the country to pick up steam soon. If the country experiences more downward trends, the country would also reduce interest rates or reserve requirements.
