China's economic development environment remains "very complex" with difficulties and problems persisting in the process of its economic recovery, said the State Council Wednesday.

The national economy was heading toward the goal of macroeconomic regulation, with a strong foundation for economic recovery, said a statement released after a Wednesday executive meeting of the State Council, the Cabinet, chaired by Premier Wen Jiabao.

The fast economic growth can be, to a large extent, attributed to the stimulus package.

As the economic recovered, old difficulties remained and new problems emerged, said the statement.

With trade protectionism on the rise and major economies suffering from climbing unemployment rates, uncertainties remained in the global economy, said the statement.

Severe drought in southwestern China, how to increase grain production and rural people's income, growing inflation expectations, especially soaring housing prices, managing financial risks, and pressure of increasing unemployment were posing great challenges to the economy, said the Cabinet.

"We should never rest in the face of these problems and difficulties," said the statement.

In resolving the problems, China would give top priority to speeding up the transformation of the economic development mode and improving the quality of economic growth, according to the statement.

The government would introduce measures to boost agricultural production, improve financial management and regulation, stabilize prices, rein in soaring property prices, expand domestic demand, push forward economic restructuring, increase energy saving and emission cuts, enhance the opening-up policy and improve the people's livelihood.