Chinese premier delivers annual economic report

Mar 5, 2010, 1:20 GMT

Beijing - Chinese Premier Wen Jiabao called for higher rural incomes and stronger domestic demand as he delivered a state-of-the- nation economic report Friday at the opening of the annual National People's Congress.

Wen reported the government's economic performance in 2009 and outlined key economic policies for this year to the NPC, which is the nominal state parliament of the ruling Communist Party.

'This is a crucial year for continuing to deal with the global financial crisis, maintaining steady and rapid economic development, and accelerating the pattern of economic development,' Wen said.

President Hu Jintao and other party leaders were among some 3,000 delegates who heard the opening speeches of the 10-day event.

China said its economy showed signs of recovery from the global slowdown last year. Despite a 16-per-cent fall in export value in 2009, gross domestic product grew by 8.7 per cent, stimulated by a 4- trillion-yuan (586-billion-dollar) infrastructure-centred spending package.

Earlier this year, the party's 'Number 1 Document,' an annual statement of key economic and social policies, promised more support for agriculture and improved social security for rural areas.

NPC spokesman Li Zhaoxing said Thursday that China planned to increase its military budget for this year by 7.5 per cent, following much larger defence hikes in recent years.

About 2,250 members of an advisory body, hundreds of journalists and observers, and a military brass band also attended the opening of the NPC.