At the same time, attention should be paid to the possibility that European financial institutions’ credit contraction will spill over to trade credits and prolong the current economic slowdown. In terms of achieving sound development of the global economy in the longer term, a key factor will be how to maintain the balance between economic growth and price stability.
In this regard, China’s announcement that lowered the economic growth target from 8.0 percent in 2011 to 7.5 percent in 2012 was a favorable step toward achieving a soft landing of the economy, despite the weakened economic stimulus effect in the short term.