Chinese Finance Minister Xie Xuren says the government is working to boost domestic demand to help counter the financial crisis, but the economy still faces “daunting challenges.”
Speaking at the annual meeting of the Asian Development Bank, the offical said “The Chinese government’s basic approach is to expand domestic demand, particularly consumer demand, to promote growth” adding “these macroeconomic measures are paying off and positive signs have shown in the economy.”
Xie Xuren then went on to warn that much still needed to be done, saying “The People’s Republic of China still faces daunting challenges such as a sharp decline in exports, over-capacity in some industries, slow recovery in industrial growth, drop of economic returns, reduction in fiscal revenue and severe pressure on employment.”
EUR/USD and cable both sold off slightly on the headline hitting the wire, presently at 1.3300 and 1.4935 respectively.
