China still has room to deploy fiscal and monetary policy in response a slowing economy and meet its annual growth target of 7.5%, Premier Wen Jiabao said Tuesday, Bloomberg reported. China has allocated a US$16 billion fiscal package toward boosting growth and stimulating the economy, he said. “Be it monetary or fiscal, we still have ample strength,” the premier told the World Economic Forum in Tianjin. Recent export and industrial figures show an economy struggling to keep apace with government goals. Growth below 7.5% would be the lowest rate since 1990. The People’s Bank of China should employ moderate monetary easing, according Li Daokui, a former advisor to the central bank. President Hu Jintao also acknowledged the downward pressure felt throughout the economy at a leadership summit in Russia last week.
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