China stresses domestic demand in stimulating growth as crisis harms export

Source: Xinhua | 03-05-2009 11:57

BEIJING, March 5 (Xinhua) -- China would make boosting domestic demand a "long-term" strategy and take further measures to stimulate consumer spending, as the country seeks to lead its economy out of a slowdown that started with falling export.

The country would "give a full play" to the "leading" role of domestic demand, particularly consumer demand, in driving economic growth, Premier Wen Jiabao said in his government work report at the opening of the second session of the 11th National People's Congress (NPC) Thursday.

China would actively boost domestic demand by increasing people's income, encouraging auto consumption, tapping the rural market, stabilizing the real estate market, offering proper housing for low-income families and accelerating the reconstruction of areas devastated in the May 12 earthquake last year, Wen said.

The government would raise the proportion of the national income that goes to wages, he said, adding the government would continue to adjust income distribution and increase subsidies to farmers and low-income urban residents.