As reported this week on Reuters, China is on track to meet its target economic goals for this year. Speaking at a meeting of the World Economic Forum held in Tianjin this week, Premier Wen Jiabao said “China’s economic development trend is good, economic growth still remains within the target range set at the beginning of the year, and the economy is stabilizing.”
He mentioned that, if needed, the central government could tap into a special stabilization fund that has 100 billion yuan left in it. China set a 7.5% target for their economic growth in 2012 and they are hoping to reach it. Some are skeptical that they will be able to, however, as they fear that the global slowdown is slowing the economy across the country.
China’s factories are actually running at their slowest rate of expansion since May 2009.
Wen is entirely optimistic, however, saying that all initiatives that the government has undertaken this year were within their budget and that Beijing has a fiscal surplus of about 1 trillion yuan so far this year.