China's economic recovery "truly extraordinary and inspiring" -- China's premier

Talking about the financial crisis that hit the country last year, Jiabao stated, “The number of unemployed people increased significantly, many migrant workers had to return to their home villages and the pace of our economic growth suddenly slowed down."

Despite the crisis, China’s recovery has been "truly extraordinary and inspiring.” Due to its calm response, the China was the first country to emerge from economic slowdown, he added.

The government had pumped in $1.4 trillion in the form of bank lending and stimulus to trigger growth.

The economy reported an 8.7 percent increase in gross domestic product (GDP) in 2009. Further, there was 10.7 percent growth in the last quarter of the year.

Threats still lingering, says Jiabao
But the China's premier checked his upbeat talk with the acknowledgment that the economic crisis is yet not over and it will take time for the world economies to be stable.

“Destabilizing factors and uncertainties” still pose challenge to growth. There is a possibility of larger fluctuations in the prices of major commodities and exchange rate of currencies, he said.

In his annual speech to the National People's Congress, Jiabao addressed the concerns of the citizens, adding that everything that the country indulges in should ensure that the people live a happier life.

He added that in China’s “negative public sentiment and social instability” are on the rise.

In the country, the farmers and workers are still indulging in violent protests due to problems like land seizures, unpaid wages etc. Further, the citizens have also taken to the streets, opposing government policies.

Premier promises increased spending for economic growth
In a move to ensure continuous process of growth and development, the prime minister promised increasing expenditure to promote welfare, specifically in rural areas.

Explaining the need for increase in spending, Jiabao stated, "We can ensure that there is sustained impetus for economic development, a solid foundation for social progress, and lasting stability for the country only by working hard to ensure and improve people's well-being."

He has also pledged to increase money supply by 17 percent, and lending by $1.1 trillion this year.

Jiabao added that country will also focus on encouraging lending activities, and curb inflation to meet the growth rate target of eight percent. Many analysts are confident that the economy will meet this target.