Chinese Premier Wen Jiabao said on Sunday the country's exit strategy on economic stimulus should be "very cautious and flexible" in order to shore up the hard-earned economic recovery.

"We must maintain the continuity and stability of macro economic policy, which means we will continue implementing proactive fiscal policy and moderately loose monetary policy to consolidate the trend of economic recovery," Wen told reporters after the annual parliamentary session closed.

Wen said the government will make more efforts to keep its policies flexible while keeping close watch on domestic and international economic changes.

He noted it is a very difficult job to properly handle the relations between maintaining economic growth, adjusting economic model and managing inflation expectation this year.

"Although it is a tough job, it should be addressed," he said.

Wen said agriculture is the life-line of the national economy, and it plays a decisive role in ensuring economic growth and managing inflation expectation, he said.