Some mainstream institutions in China expect the country's economy to grow at a rate between 8.7 to 9.2 percent next year, which is lower than the expected rate of 9 to 9.5 percent for 2005.

The State Development and Reform Commission (SDRC) made the announcement on the basis of estimation provided by the National Bureau of Statistics (NBS), Chinese Academy of Social Sciences (CASS), the State Council Development and Research Center and the State Information Center.

All these institutions believe that China's national economy will continue to grow fast, due to the favorable international and omestic environment next year, according to SDRC.

Those institutions expect the retailing volume of social consumer goods to grow 12 to 13 percent next year, the investment to grow 19.7 to 20 percent, the export to grow 12.6 to 27 percent and import to grow 16.2 to 20 percent, according to SDRC.

The consumer price index growth in 2006 is expected to equal that of this year, the SDRC said.

All institutions believe that the economic growth mode is still crude, the oversupply of some industries and foreign trade imbalance are still serious, and it is difficult to raise rural people's income.

The NBS suggested that reform be enhanced to solve in-depth problems in economic operation. The CASS suggested the government enhance and improve macro-control policy, make full use of the regulatory role of the market, and increase budget on rural compulsory education and medical services.

The State Council Development and Research Center suggested the government continue stable fiscal policy, reduce T-bonds for construction by large margins, increase direct subsidies on farmers growing grains, and speed up price and tax reform in water, energy and mineral resources.

Source: Xinhua