Top leaders: economy stable, challenges ahead

China's top leaders have said the economy got off to a steady start in the first quarter, shown by growing domestic consumption and relatively fast rises in investment and foreign trade, while unemployment remains low.

The CPC Politburo Standing Committee says the government will try to keep the growth momentum, while warning against potential risks in the financial sector. To address concerns about Chinese local governments' mounting debts, the leadership says it will set up a standard local government financing mechanism.

The standing committee also highlights other challenges facing the country's economy, including a sluggish global recovery and soaring liquidity.

This is the first time in 9 years that China's top leadership has met on the economy in April. It comes after a string of data suggesting slower growth.

Economists have taken the meeting's statement to mean that leaders will not sacrifice structural reforms to prop up growth, that is, unleash stimulus measures.