In 2006, the national economy maintained steady and fast growth. The Central Party Committee and the State Council adopted a series of macro-economic control policies and measures in a timely manner to target the outstanding problems, which emerged in economic development. These policies and measures proved to be effective and helped the economic development avoid moving from speedy growth to over-heating. The economic and social development made a good start for the implementation of the 11th Five-Year Plan.

According to preliminary estimation, the gross domestic product (GDP) for the year was 20,940.7 billion yuan, up by 10.7 percent at comparable prices, which is 0.3 percentage point higher than that in the previous year. Of this total, the value added of the primary industry was 2,470.0 billion yuan, up by 5.0 percent; that of the secondary industry was 10,200.4 billion yuan, up by 12.5 percent; and that of the tertiary industry was 8,270.3 billion yuan, up by 10.3 percent. In terms of the four different quarters, the GDP growth was 10.4 percent, 11.5 percent, 10.6 percent and 10.4 percent respectively.

1. Agricultural Production Kept a Steady Growth with a Bumper Grain Harvest. In 2006, the total output of grain surpassed 490 million tons. The output of cotton was 6.73 million tons, up by 17.8 percent over the previous year. Despite the influence of epidemic diseases, the animal and husbandry industry kept fast growth. The total outputs of meat and eggswere expected to reach 80 million tons and 29.5 million tons, up by 4.5 percent and 3.0 percent respectively over the previous year.
 
 
2. Industrial Production Increased Rapidly with Improved Economic Returns. In 2006, the value added of industrial sector was up by 12.5 percent over the previous year. Of this total, the value added of the industrial enterprises above the designated size was up by 16.6 percent (up by 14.7 percent in December), of which the growth of the heavy industry increased by 17.9 percent and 13.8 percent growth for light industry. The sales ratio was 98.1 percent for the industrial enterprises above the designated size. In 2006, the amount of profits made by those enterprises was 1,878.4 billion yuan, an increase of 31.0 percent.

3. Fast Growth Was Registered in Fixed Assets Investment with the Drop of Growth Rate. In 2006, the total investment in fixed assets reached 10,987.0 billion yuan, a year-on-year growth of 24.0 percent, with a drop of 2.0 percentage points over the previous year. Of this total, the fixed assets investment in urban areas was 9,347.2 billion yuan, up by 24.5 percent, a drop of 2.7 percentage points (1,416.0 billion yuan for December, up 13.8 percent), and that in rural areas was up by 21.3 percent. Of the fixed assets investment in urban areas, the Central Areas enjoyed a 33.1 percent growth, which was 0.4 percentage point higher while the growth rates in Eastern and Western Areas dropped by 3.4 and 4.7 percentage points, or the year-on-year growth was 20.6 percent and 25.9 percent respectively. The total investment in the real estate development for the year was 1,938.2 billion yuan, a year-on-year growth of 21.8 percent, which was 0.9 percentage point higher than that in the previous year.