The Premier acknowledged the country is facing "unprecedented difficulties and challenges".

"The global financial crisis continues to spread and get worse," he said.

Wen said 2009 could be "the most difficult year for China's economic development since the beginning of the 21st century."

Last time when the country was confronted by a similar crisis, China's economy expanded by 7.8 percent in 1998, in the wake of the Asian financial crisis.

Some analysts have put their forecasts of 2009 China growth below eight percent. The lowest projection is 5 percent.

The Chinese economy slowed to 6.8 percent in the fourth quarter, the worst slowing in nine years, as the global downturn sapped demand for Chinese exports, which comprise about 40 percent of gross domestic product (GDP).

In a bid to achieve the growth target, Wen said the country would implement a proactive fiscal policy and a moderately easy monetary policy. The government will increase its spending and expect banks to issue five trillion yuan in new loans.

The government would also actively boost domestic demand, continue to proceed with the economic restructuring and independent innovation and accelerate the transformation of the development pattern, strengthen the position of agriculture as the foundation of the economy, and make arduous efforts to promote export, according to the Premier.

Wen pledged that this year's government work would give high priority to dealing with the global financial crisis and promoting steady and rapid economic development.

(Xinhua News Agency March 5, 2009)