Downward pressure on China's economy 'increasing', admits Premier Li Keqiang
Li Keqiang's comments come as the central bank reports a decline in the money supply
The mainland will step up targeted measures to cope with downward pressure on the economy, Premier Li Keqiang said yesterday.
Li's remarks, to a group of leading economists and executives, came as the central bank said the broadest gauge of money supply had declined as demand from the real economy shrunk, and regulators tightened curbs on shadow banking due to risk concerns.
Today the mainland will announce the results of its first-quarter economic growth and other major data.
"We must keep a sober mind and realise that the downward pressure is increasing … and be prepared to deal with challenges from the bigger difficulty," Li told a state broadcaster.
Economists expect the National Bureau of Statistics to announce that first-quarter economic growth cooled to about 7 per cent, year on year, down from 7.3 per cent in the final quarter of last year.
Li said the Chinese economy had "great potential, resilience" and that there was "room for improvement".
He called for greater investment overseas to push growth amid weak domestic demand. "[We should] explore new space [for development] in the participation of international cooperation and competition," Li said.