Report on economic climate calls on more domestic demand

The latest report on economic climate published by the State Information Center records a year-on-year 23 percent increase of China's foreign trade for the first 4 months which values 415 billion USD. It is noticeable that the 34 percent upsurging trend of exports reaching some 218 billion USD outclassed the 13 percent rise of imports valued 190 billion plus USD.

Therefore, the report warned against the risk of an economic plummet in the case of changes and adjustments of the global economy and foreign exchange policy as the country's economic growth, albeit fast, is too much driven by external demands, which in turn leads to vulnerability to external pressures.

It takes the declining consumer price index in April as another indicator of weak domestic demand. It describes the CPI's slight climb of 1.8 in April over the same month of last year as "somewhat unexpected".

The report suggests the policy leverage the unbalance between the home and outside demand. It says the macro-control concerning the domestic demand should shift its focus from controlling the expansion to relaxing the tight rein on credit supply through the prudent monetary policy and fiscal policy and timely moderate adjustment to pick the domestic demand up.

By People's Daily Online