Chief economist: Downward momentum slows in China

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Yao Jingyuan, chief economist of the National Bureau of Statistics, said on Tuesday that China's economy is on the road to recovery. He added that it will continue to perform well through the rest of the year, so long as the government sticks to the proven policies that have helped the recovery.

Yao said that downward momentum has slowed, and that China's economy is on the road to recovery. He said the country's economy will perform well so long as the stimulus packages continue to be implemented.

However, he pointed out that the fundamentals of the recovery are not yet solid, and the path to full recovery is not yet clear. As a result, he said, the government must continue to apply an active fiscal policy and an appropriately loose monetary policy.

He made it clear that the Chinese economy faces a number of problems, including a sharp decline of exports, and a surplus of production capacity, along with a worrying employment situation. But he said that despite the difficulties, China's economic fundamentals are strong.