BEIJING - China's cabinet Friday vowed to strengthen fine-tuning of the economy in a timely manner to cope with new circumstances as the first quarter GDP registered the lowest growth rate in three years.

The current economy is generally in a stable shape, but is faced with many difficulties and challenges. Efforts should be made to leave more room for new policies and prepare for hardships and tests, according to an executive meeting of the State Council, or cabinet, presided over by Premier Wen Jiabao.

The government pledged to improve macro-regulation, enhance the demand management, and make policies more targeted, flexible and forward-looking, according to a statement issued after the meeting.