Business / Economy

China economy turns for better: Official

(Agencies) Updated: 2012-06-19 10:53

China's economy, the world's second biggest, may be improving this month after government measures to support growth, Commerce Minister Chen Deming said in Mexico.

"The downward economic trend in April and May this year is pretty obvious," Chen told reporters at a briefing in Los Cabos today." I personally think that the June situation is turning for the better" after the central government moved to boost consumption, he said.

China's first interest rate reduction since 2008 this month highlighted the threat to the economy from budget cuts in Europe that are constraining demand for exports. Chen said that his nation's goal of 10 percent growth in trade this year is "still possible" if the European debt crisis can be contained in the second half.

Economists are paring forecasts for China's growth, with Credit Suisse Group AG seeing a 7.7 percent expansion this year, the weakest pace since 1999. A slowdown in investment and curbs on home purchases have added to weakness in exports in cooling the economy.

Chen urged nations to avoid trade protectionism, as disputes simmer between the US and China.

Leaders of the G20 nations are meeting in Mexico for a two-day summit dominated by the financial crisis in Europe.

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