Participants of a State Council executive meeting reached consensus on Friday that as long as economic macro-control measures are resolutely implemented, problems and contradictions in the current economy will be solved.

Premier Wen Jiabao presided over the executive meeting, in which participants held that the country's economic situation was currently good and that some initial progress had been made since the economic macro-control measures were taken.

According to the meeting, excessive growth of investment on fixed assets has been somewhat controlled, excessive investment in certain industries has been somewhat curbed, the grain price has become stable again and the price hike of important production means has been curbed to some degree.

Meanwhile, industrial production continued to increase fast, agricultural production improved, foreign trade kept fast growth, financial incomes increased remarkably and citizens' incomes increased rapidly. All these phenomena demonstrated that the macro-control measures taken by the central government were timely, accurate and effective.

However, the meeting stressed the need to be soberly aware that because of the economic inertia force, currently the growing rate of investment on fixed assets is still fast, monetary credit has not been controlled and the country still suffered from energy shortages.

The major problems and contradictions in the economy have not been completely solved, according to the meeting.

The meeting stressed that structural adjustment, economic system reform and changes of economic growth means will be taken in future. On the one hand, excessive investment should be cooled off, but on the other, consumption demand should be extended.

The meeting required better implementing the following tasks: continue to strengthen monetary credit control and carry out "appropriately tightened" monetary policies; relieve the contradiction between economic growth and energy shortages through adjusting prices; further deepen land market regulation; continue to check illegal practice in fixed assets investment; and speed up industrial structural adjustment through intensifying investment into agriculture, high-tech industry, communication and energy exploitation as well as continue to support the "go west campaign" and the rejuvenation of the northeast industrial belt.

Prior to the executive meeting, the State Council held a series of forums to hear opinions from local officials, experts and representatives of different industries.

(Xinhua News Agency May 24, 2004)