The implementation of a series of central policies to tackle the global economic downturn has proved to be effective despite the economic climate both home and abroad being "complicated and grim", according to a statement by the Communist Party of China (CPC) Central Committee Political Bureau on Thursday.

According to the statement, the economy is back on track largely due to the government's stimulus package to boost domestic demand. As the country's economy moves toward a healthy direction, more positive signs have emerged. Agricultural sectors and rural economy are growing in a stable manner.  Industrial production has regained its growth speed. Evident progress has been made in industrial restructuring, greenhouse gas emission reduction, energy efficiency, and regional development. Positive progress has also been achieved in issues related to people's livelihood such as employment, social insurance.  New breakthroughs have been made in the reform of key areas.

However, the country's economic development still faces many difficulties.  The economic recovery is not stable yet and many destabilizing factors still exist at home and abroad. Therefore, difficulties and challenges in the country's economic development should be fully assessed and at the same time macro-economic control should be emphasized. 

The statement also called for efforts to create more favorable conditions for the country's economic and social development in order to offset the impact of the global economic downturn. More emphasis should be focused on promoting industrial restructuring, innovation, energy-conserving and environment protection.  Efforts should also be made in promoting coordinated development of both the urban and rural areas, deepening reform and improving people's livelihood. 

The country should also improve policies to stimulate national economy, maintain the good momentum of economic recovery, and realize this year's target of social and economic development. The government should also have a strict control on repeated construction. The development of small and medium-sized enterprise should be emphasized, with strict government's supervision on its energy saving and emission reduction work.

More efforts are needed on the process of urbanization and coordinated development in different regions of the nation, especially old revolutionary bases, ethnic minority areas, border areas and poor areas.