> Chinas GDP to Grow by 10.5% in 2006

Chinas GDP to Grow by 10.5% in 2006

China's gross domestic product (GDP) is estimated to exceed 20 trillion yuan (about US$2.56 trillion) this year, up 10.5% over 2005.

China's economy has been developing this year fairly fast with good efficiency and low inflation. Stable economic operation has benefited the people and will power future development.

Judging from the investment side, the energy consumption for unit GDP dropped somewhat; from the output side, the fiscal income is expected to grow by about 20% and profits of large enterprises to rise by 30%; from the structural side, there have been many positive changes in industrial restructuring.

Chinese people have benefited well from the steady and fast economic development. The SDRC projects that newly increased job opportunities could pass 10.5 million for the whole year, exceeding the 9 million planned figure at the beginning of the year. The per capita net income for farmers and urban residents is expected to grow by 6 % and 11%, respectively. The consumer price index will rise by 1.3%.

In the first 11 months, the investment in fixed asset went up 26.6% year on year, with the growth rate down 4.7 percentage points from the first half of the year. Newly increased loans in September, October and November have also decreased by 125.2 billion yuan, 9.5 billion yuan and 31.5 billion yuan, respectively.

However, it's necessary to keep clear-headed because the basis for economic development is not solid enough, the GDP growth rate is still too fast, and the cost is too much.