The Chinese Academy of Social Sciences (CAS) released the 2007 Blue Book on China's economic situation on December 7. An expert from CAS said that China's macro economy is still strong; it continues to grow rapidly and inflation remains low. He predicted that China's economic growth rate would slow in 2007, but remain between 9.6 and 10.1 percent.

At the beginning of 2006, to counter some outstanding problems in the economic structure, the CPC Central Committee and the State Council introduced a series of new macroeconomic controls. During the third quarter of the year, the growth rate of production, investment, and credit began to slow as these controls took effect. The national economy has a solid foundation and favorable conditions are present for development in 2007.

Li Xiaochao, spokesman for the National Bureau of Statistics, said that China's overall development strategy supported the smooth and rapid development of the national economy. The decision to construct a harmonious socialist society at the Sixth Session of the Sixteenth Central Committee of the Communist Party of China will boost society's confidence in developing the economy.

According to the National Bureau of Statistics, the enterprise boom index in the third quarter of this year was 136.7 and the confidence index of entrepreneurs was 132.6, rising 4.7 percent and 5 percent respectively from last year. Experts consequently believe that smooth and rapid economic development in 2006 has laid the foundation for 2007.

Experts say that in terms of supply and demand, the supply of product data and funds is great, as is the demand for investment and exports, which suggests that these will be the foundations of economic development next year.

By People's Daily Online