China's economy is developing smoothly at a stable, fast speed in 2006, despite overgrowth in investment and credit and the imbalance of the international trade, said Qiu Xiaohua, head of the National Statistics Bureau.

Qiu said on Sunday that China's economy perspective is bright at present, when attending the foundation ceremony of the senior research institution of the elite Shanghai University of Finance & Economics hosted by the Chinese National Economists Society .

The "bright spots" are embodied in the following three aspects:

First. The economic indexes retain a double digit growth except the indexes in market price and the introduction of foreign capital since the beginning of this year. From January to May, the industry added value rose 17 percent, the investment increased by 30. 3 percent, the total amount of consumer goods increased by 13. 2 percent, and the total imports and exports of foreign trade was up 23. 9 percent, Agricultural production is in a fairly good shape and a good harvest was reported for with summer harvest crops, with relatively good yields reaping for overall and per hectare yield. This year, the state policy of focus on agriculture was implemented fast and the structural reform of agriculture proceed ahead well.

Second, the national financial situation is relatively good. The financial income in the first five months of 2006 rose by 22. 8 percent, exceeding 500 billion yuan, providing a powerful guarantee for the harmonious economic and social development.

Third, a gratifying outcome has been scored in the improvement of the quality of the people's life. By the end of May, 50 percent of the new jobs addition goal has been attained in the country's urban areas. The real income of both urban and rural residents has increased by over 10 percent. More input has been allocated for the development of social undertakings and services.

All the instances have shown that the country's policy on macro-economic regulation is effective.

By People's Daily Online