"We feel the growth momentum will slow in the second half, but not to the extent that we would raise our concerns," Lee said. "I think there will be graduate slowdown which is probably more sustainable growth pattern for China in the medium term. So we are sort of moving towards a steady growth pattern."
Earlier on Tuesday, the People's Bank of China, the central bank, said while it is possible for China's economic growth to slow, the chance for a "double dip" is seen as slim.
Current economic development has revealed signs of a slowdown in China's growth, though the economic fundamentals remain strong, the central bank said in a report posted on its website.
UNCERTAINTIES AND SUGGESTIONS
Lee said the Chinese economy was facing an environment that was very uncertain, domestically and internationally.
The U.S. economy, the world's largest, has uncertainties given a slowdown of its recovery, which was evidenced by recent data on the rising unemployment and falling house prices.
In Europe, there were uncertainties over the impact of the spillover, though very unlikely, from the GIPS from the entire EU, he said, referring to the sovereign debt crisis which had occurred in Greece, Italy, Portugal and Spain.
And the Chinese economy itself has uncertainties, such as the self-sustainable private consumption strength and the speed of the stimulus package which the Chinese government has implemented, said Lee.
He said the Chinese government has in recent years been working very hard to re-orientated growth strategy and to increase household income and promote private consumption.
It was a real challenges for China to "manage the rebalancing of the growth strategy, especially at the time when the global environment is very uncertain", said Lee.
He suggested "a gradual exiting" of the 2-year 4-trillion-yuan (5,900 billion U.S. dollars) stimulus package, introduced by the Chinese government in November 2008 to cope with the financial tsunami, and a slowdown in the credit growth.
China "should just let its life go through and phase out which will then continue providing needed fiscal stimulus to the economy, " Lee said.
The IMF assessment, which Lee had also participated in, suggested it was appropriate for China's 2010 budget to maintain support for a steady resumption of private demand.
There was "room for further reorientation of the stimulus package toward measures that promote private consumption, raise household income, lessen income inequality, and improve the social safety net, building on recent progress," it said.
The targeted reduction in broad money growth this year balanced well the need to provide continued support to the economy with the desire to safeguard the health of bank balance sheets, it added.
Chinese Premier Wen had suggested that the theme of China's macroeconomic policies in the second half of this year should aim to "maintain the continuity and stability of policy".
Special Report: Global Financial Crisis
