China's macro economic policy achieves effective results: minister

China is well on the way of a more balanced economic development this year as its macro economic adjustment policy starting from 2004 has achieved effective results, Chinese Finance Minister Jin Renqing said on June 10.

Jin Renqing, who was invited to attend a G8 finance ministers' pre-summit meeting, was speaking at a presentation of the Finance Minister of the Year Asia 2005 awarded by a London based global financial magazine The Banker.

He said China's overall economy has been performed well and has entered a new growth cycle.

He pointed out that since the start of the year, a timely transformation of an expansion fiscal policy into a prudent one has brought about a balanced development of the Chinese economy with the industrial growth being slowed down and pace of investment reduced as well as an accelerated agricultural increase and a hike of domestic consumption.

He said the overheating of fixed assets investment in some fields is now under control and inflation trend has been checked effectively.

He said China saw a GDP growth of 9.5 percent in the first quarter while its world trade volume has increased by 23.1 percent.

China's fiscal balance is also in a healthy state, Jin said, adding that fiscal deficit is expected to be reduced to 2 percent from 2.7 percent of GDP in 2005.

Jin also met British Chancellor of the exchequer Gordon Brown, American Finance Minister John Snow, German Finance Minister Hans Elchel and the World Bank new governor Paul Wolfowitz in bilateral talks on Friday.

He will attend an informal breakfast with the G8 finance ministers along with his counterparts of Brazil, South Africa and India who were also invited to London to attend the two-day finance ministers meeting nearly a month ahead of the summit in Gleneagles, Scotland.

Source: Xinhua