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China's economy may be developing in the direction favored by macro-control policies, but the country has paid too dear a cost for its sizzling economic growth.

Ma Kai, the minister in charge of the National Development and Reform Commission, made the remarks when reporting on the current economic situation to officials in the capital.

Although China has made remarkable achievements in its economic and social development, it still faces daunting challenges, such as the unreasonable economic structure, primitive mode of economic development and systematic constraints, Ma said.

It is difficult to sustain growth in farmers' incomes, and investment and credit loans -- which have fallen a little -- may rebound and heat up again, he said.

The imbalance in international payments is getting worse, and the country faces severe environmental problems as well as resource and energy shortages, he said.

Ma listed eight major economic tasks for the year, including improving macro-control policy, making steady progress in building a new socialist countryside, enhancing environment and land protection and boosting innovation capacities.

Others are pushing forward urbanization, further opening the economy, promoting education, public health and culture, and solving problems relating to the general public's vital interests.